Chapter 7 Procedure Explained

After you meet with a San Francisco Bankruptcy Attorney, you will begin to gather the necessary information so the attorney can begin to prepare your petition.  You must list all of your debts, (including claims against you which you dispute, personals loans, etc.) assets and other information in the petition.

About three to four weeks after the Petition is filed, a hearing, known as a 341 Creditors’ Meeting, is held to give your creditors an opportunity to question you and determine if the petition is in order.  The trustee assigned to your case will generally ask whether you are familiar with your bankruptcy petition, whether you have listed all your debts and assets, and how you got into financial trouble.  Your assets which are not exempt will be required to be turned into the Court to be divided among all your creditors.

About two to three months after the Creditors’ Meeting, you will receive a Final Discharge of all the dischargeable listed debt.

Even if a debt can be discharged, you may have special reasons why you want to promise to pay it.  For example, you may want to work out a plan with the bank to keep your car,  and to promise to pay that debt, you must sign and file a Reaffirmation Agreement with the Court.  Reaffirmation Agreements are special rules and are voluntary.  They are not required by Bankruptcy Law or by any other Law.

They must be:

• Voluntary
• Must not place too heavy a burden on you and your family
• Must be in your best interest
• Can be cancelled anytime before the Court issues your Discharge or within sixty days after the Agreement is filed with the Court, whichever gives you the most time.

If you reaffirm a debt and then fail to pay, you owe the debt the same as though there was not a Bankruptcy filed.  The debt will not be discharged and the creditor can take action to recover any property on which it has a lien or mortgage.  The creditor can also take legal action to recover a judgment against you.