If the process of filing a bankruptcy has left you wondering what all is involved, now’s the time to learn. While the steps leading up to the actual event are rather involved, there are still some bankruptcy proceedings to consider after filing has taken place. Let’s look at what they are:
- Automatic stay. The first step that occurs after filing a bankruptcy is the automatic stay. This is a notice that alerts debt collectors that they are no longer allowed to communicate with you regarding what you owe them.
- Meeting with the creditors. About a month later, the bankruptcy proceedings continue with a meeting with the creditors. During this meeting, you will discuss the filing and confirm that all eligible debts have been included and are valid. The trustee will attend the meeting and look for any discrepancies and inaccuracies that you’ve listed in your total debts owed.
- Property handed over for liquidation. In the meeting, if you have property that you have not listed as exempt, it will be given to the trustee to sell off as a way to pay your creditors. At this time, you will likely be informed that you are not allowed to give away, throw away, or sell any of your property without the court’s prior consent.
- Obtaining a discharge. After filing a bankruptcy it usually takes somewhere between four and six months to receive the actual notification that you have been relieved of your the debts claimed during the bankruptcy proceedings. Until you receive your discharge, you can ask that the entire process be dismissed.
Understanding what happens during bankruptcy proceedings can give you a clearer picture of what to expect if you think you might go through with it. So before you get the process going, it’s good to consider strongly what happens after filing a bankruptcy.