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What to Expect When You File for Bankruptcy | Hickson Law PC

If debt has taken you to a deep, dark place and you are considering filing for bankruptcy, knowing what to expect may ease your concerns and make your decision clear.

Before You File

You’ll need to take a pre-filing credit counseling course before you file to determine if bankruptcy or another option is your best path to debt relief.

Choose Your Type

If you decide to proceed, educate yourself about the two main types of consumer bankruptcy. For both Chapter 7 (liquidation bankruptcy) and Chapter 13 (reorganization bankruptcy) obtain the needed forms.

Creditors, Back Off!

If the court approves your application, creditors can no longer collect payments. Talk about stress relief!

More Steps

You’ll attend a creditors’ meeting, during which your bankruptcy trustee and any creditors who want to attend ask you about your financial situation. For Chapter 7 filings, your trustee will decide whether to liquidate your assets. For Chapter 13 filings, you’ll receive a payment plan. You must also sign up for a debtor education course.

Drop in Credit Score

Your credit score will drop for seven to 10 years after filing. But keep the faith: the bankruptcy process is designed to help both you and your score recover.
Obviously, the bankruptcy process goes beyond the simple steps above. Using a bankruptcy attorney from the start is a smart decision. Your attorney knows how to help you keep more assets and prevent costly mistakes. To learn more about what to expect when you file for bankruptcy, call Hickson Law PC at 512-900-4460.