STEP 1: Evaluating your financial situation by exploring all bankruptcy alternatives based upon income of the person potential filing a bankruptcy as well as the income, if married, of any spouse living with the same personal filing. This evaluation will include a review of any pay stubs, operating statements of anyone self-employed or owning a business, and all other sources of income as well as the household expenses of the individual(s).
STEP 2: Engaging our office to file a bankruptcy, and the singing of a written retainer agreement that explains the rights and responsibilities of the client and the law office. You will need to sign and date the agreement at the immediate conclusion of the evaluation and intake process, before leaving the office.
STEP 3: Creating a file for you where a five (5) digit number is assigned based upon the written retainer agreement so that there is a formal legal arrangement, enabling you to obtain protection under the Fair Debt Collection & Practices Act, prohibiting creditors harassment. (This does not stop creditors from suing you but will legally end the creditor's abusive and repeated telephone contact once the information is provided to the creditor of attorney engagement.)
STEP 4: Establishing a payment play over a maximum of six (6) months to pay off the full retainer agreement cost for filing the bankruptcy. Expect to be billed for ⅙ of your initial balance until payment is made in full. The faster the payment is made and documents produced, the faster the bankruptcy can be filed. Thus, the bankruptcy will not get filed until all fees as agreed are paid in full and all required documents are produced. The required documents needed are checked off or listed in your initial receipt. Please note that unless directed otherwise, generally, once you have retained our office, you will not be making any further payments on your credit card debt, and you will not go into further debt.
STEP 5: Paying in full will result in our office providing you with the code to immediately call Greenpath, the credit counseling provider that we have engaged for you to go through the required telephone/ computer sessions. No bankruptcy can be filed under the new law without going through the credit counseling process.
STEP 6: Paying in full will also result in our office seeking with your assistance to obtain a free credit report from the website www.annualcreditreport.com. We generally try to have two recent credit reports plus any bills (sorted without duplicates, envelopes, or attachments) to begin the process of preparing the petition. If we are not able to obtain the report or the reports that you have provided are not current, we may need to order you a credit report at an additional fee.
STEP 7: Expecting a call from our office within 14 days (generally sooner) of final payment and the receipt of credit reports concerning the process of your case. If you have a garnished or a bank restraint, you shall expect priority treatment. Once payment is made in full, the office will prepare your case based upon all documents that are in our possession. You may be notified of the need to produce additional documents, answer some basic questions concerning your case on the telephone, or make an appointment to see the attorney due to the complexity of your case.
STEP 8: Making an appointment and seeing the attorney for a final review of your case will generally occur within 14 days of final payment. However, if all documents are not produced, this final review appointment may not take place. If for any reason your case is delayed and you are not sure why or if you have questions concerning the delay or any other questions concerning your case, make an appointment with the attorney and speak with him directly. Your case cannot be filed until you both review the petition and sign the petition and meet with the attorney. You must stay in touch with the office and specifically with the attorney when there is any delay.
STEP 9: Filing of bankruptcies generally occur on Saturday when the office is closed. Thus, whichever cases are ready by the end of the business day on Friday will be filed on Saturday. If you have signed off on your petition by Friday of a given week, your petition will generally get filed that week. There are exceptions such as holidays and other events which result in a different filing delay. Once the bankruptcy is filed, expect a bank restraint or a garnishment to stop within 3-5 business days. Expect a foreclosure sale to be stopped immediately.
STEP 10: Filing of the bankruptcy results in a required heading for you to attend no earlier than twenty (20) days but generally closer to thirty (30) days from the date of filing. You will be represented by an experienced attorney, representing our office. There is generally one hearing for a Chapter 7 bankruptcy and generally no repayment to any of your creditors. Chapter 13 cases require multiple hearings and more information will be provided about the differences, including the need to pay back money to your creditors, in whole or in part.
STEP 11: Preparing for the heading is the production of an original social security card and driver’s license and the completion of the second part to the credit counseling program, called the debtor education management course.
STEP 12: Attending a hearing with a Trustee from the bankruptcy court is required. If you live in the Bronx or Manhattan, the hearing is at 80 Broad Street, 4th Floor New York, NY. If you live in Westchester or Rockland, the hearing is at the United States Bankruptcy Court, Room 243A, White Plains, NY.
STEP 13: Approximately three-four (3-4) months after the hearing you shall receive a formal discharge notice from the court and your fresh start has been completed, if you are filing a Chapter 7. If you are filing a Chapter 13, your formal discharge comes at the end of the Plan, generally three or five years.
IF YOUR CASE IS NOT PROCEEDING IN A TIMELY MANNER OR IF YOU HAVE ANY COMPLAINT ABOUT THE OFFICE OR OFFICE STAFF, EMAIL ME AT davidbabel@babelslaw.com
If you decide to seek bankruptcy relief, you can represent yourself, you can hire an attorney to represent you, or you can get help in some localities from a bankruptcy petition preparer who is not an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION PREPARER WILL DO FOR YOU, AND HOW MUCH IT WILL COST.
Ask to see the contract before you hire anyone.
The following information helps you understand what must be done in a routine bankruptcy case to help you evaluate how much service you need. Although bankruptcy can be complex, most cases are routine.
Before filing a bankruptcy case, either you or your attorney should analyze your eligibility for different forms of debt relief available under the Bankruptcy Code and which form of relief is most likely to be beneficial for you. Be sure you understand the relief you can obtain and its limitations. To file a bankruptcy case, documents called a Petition, Schedules, and Statement of Financial Affairs, as well as in some cases a Statement of Intention need to be prepared correctly and filed with the bankruptcy Court. You will have to pay a filing fee to the bankruptcy court. Once your case starts, you have to attend the required first meeting of creditors where you may be questioned by a court official called a “trustee” and by creditors.
If you choose to file a Chapter 7 case, you may be asked by a creditor to reaffirm a debt. You may want to help deciding whether to do so. A creditor is not permitted to coerce you into reaffirming your debts. If you choose to file a Chapter 13 case in which you repay your creditor what you can afford over three to five years, you may also want help with preparing your Chapter 13 plan and with the confirmation hearing on your own plan which will be before a bankruptcy judge.
If you select another type of relief under the Bankruptcy Code other than Chapter 7 or Chapter 13, you will want to find out what should be done from someone familiar with the type of relief.
Your bankruptcy case may also involve litigation. You are generally permitted to represent yourself in litigation in bankruptcy court, but only attorneys, not bankruptcy petition preparers, can give you legal advice.
