ANSWERS: 1
  • When you claim bankruptcy, a number of things will happen to move your case forward. It's important to stay on top of every step required to successfully file bankruptcy, or risk having your case for this federal debt relief denied.

    Notification

    The United States Bankruptcy Court will notify all your creditors by mail that you petitioned for debt relief. This means your creditors may no longer legally contact you.

    341 Meeting

    You or your attorney will need to attend a 341 meeting of creditors at your local bankruptcy courthouse. This gives any lenders suspecting fraud a chance to dispute your case.

    Discharge Hearing

    The final step in a bankruptcy case--if all goes as planned--is the discharge hearing. The judge can then approve your bankruptcy and issue formal papers by mail proving this.

    Credit Reporting

    Once you file bankruptcy, a notice will be put on your credit reports. If you filed Chapter 7, this will last 10 years; Chapter 13 credit reporting time is seven years.

    Garnishments

    Any wage garnishments will stop after you file bankruptcy. If the judge denies your case for some reason, then the garnishments can be reinstated.

    Source:

    U.S. Courts: Bankruptcy Basics

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