Bankruptcy FAQ's
Overview | Types of Bankruptcy | Prepare to file | After filing
After The Bankruptcy Case Is Filed
I’ve filed for bankruptcy, now what?
Do I have to complete a Debtor Education course, and how do I do that?
What is a “Proof of Claim” and do I have to file one?
I disagree with a Proof of Claim filed by one of my creditors. What can I do?
What is the “Meeting of Creditors,” and do I have to go to it?
Where and when do I go to Court for my Meeting of Creditors?
What is an “Objection to Discharge” and what should I do if someone files one?
What is a “Reaffirmation Agreement” and how does it work?
What is “Redemption” and how does it work?
What does it mean if a case is dismissed?
What can I do if a creditor keeps trying to collect money after I have filed bankruptcy?
I’ve filed for bankruptcy, now what?
As soon as your case is officially filed with the Court you are granted an automatic stay. Creditors are legally prevented from attempting to collect on any debt owed to them by you. This means that creditors must stop all collection activity, including telephone calls, harassing letters, repossessions, foreclosures, lawsuits, and wage garnishments. Although the stay is automatic, creditors must be advised of the stay. The Court issues a Notice to all creditors advising them of the filing of the bankruptcy. The creditors are informed of the case number; the existence of the automatic stay; the date set for the meeting of creditors; the deadlines for filing objections to the discharge of the debtor; and the deadlines for filing objections to the discharge of specific debts. They will receive that Notice in the mail approximately one week after the case is filed, and you will also receive a copy of that form in the mail.
Do I have to complete a Debtor Education course, and how do I do that?
In order to receive a discharge of your debts in bankruptcy, you MUST complete a Debtor Education course. We request that our clients complete this course within the first 30 days after we file their case, because failing to do so within the Court-mandated deadlines WILL result in your case being closed without a discharge, which means that you will have gone through all of this for nothing. Many of our clients fulfill this requirement by completing the course through Dave Ramsey; however, you can click here to obtain a list of all approved providers of this course.
What is a “Proof of Claim” and do I have to file one?
The written statement filed in a bankruptcy case setting forth a creditor’s claim is called a “Proof of Claim.” The proof of claim should include a copy of the obligation giving rise to the claim as well as evidence of the secured status of the debt (if the debt is secured). For purposes of obtaining your discharge, it may be important for you to file a claim on behalf of a creditor if that creditor should fail to do so. Under the Federal Rules of Bankruptcy Procedure, you (or in Chapter 7 and some 11 cases, the Trustee) may file a proof of claim on behalf of a creditor within thirty (30) days after the last day for filing claims.
I disagree with a Proof of Claim filed by one of my creditors. What can I do?
You are entitled to object to any claim filed in your bankruptcy case if you believe the debt is not owed or if you believe the claim misrepresents the amount or kind of debt (e.g. secured or priority) which you owe. In some circumstances, an Objection to claim can be initiated by filing a motion in the Bankruptcy Court; in other circumstances, it must be initiated by filing an adversary proceeding (like a lawsuit in your bankruptcy case). If you anticipate objecting to claims, you should seek the advice of an attorney as soon as possible since the objection process can be complicated and time sensitive.
What is the “Meeting of Creditors,” and do I have to go to it?
A meeting of creditors is the single hearing all debtors MUST attend in any bankruptcy proceeding. It is held outside the presence of the judge and usually occurs between twenty (20) and forty (40) days from the date the original Petition is filed with the Court. In Chapter 7, Chapter 12, and Chapter 13 cases, the Trustee assigned by the Court on behalf of the United States Trustee conducts the hearing. The hearing permits the Trustee or representative of the United States Trustee’s Office to review the debtor’s Petition and schedules with the debtor face to face. The debtor is required to answer questions under penalty of perjury concerning the debtor’s acts, conduct, property, liabilities, financial condition and any matter that may affect administration of the estate or the debtor’s right to discharge. Additionally, the Trustee or representative of the United States Trustee’s Office will ask questions to ensure that the debtor understands the positive and negative aspects of filing for bankruptcy. The hearing is referred to as the “Meeting of Creditors” because creditors are notified that they may attend and question the debtor about the location and disposition of assets and any other matter relevant to the administration of the case. However, creditors need not attend these hearings and, in general, are not considered to have waived any of their rights by failing to appear. The hearing may be continued if the Trustee or representative of the United States Trustee’s Office is not satisfied with the information provided by the debtor. The Trustee or representative of the United States Trustee’s Office may also request that the bankruptcy case be dismissed if the debtor fails to appear and provide the information requested at the hearing. The United States Trustee may also request that the debtor be ordered by the Court to cooperate or be held in contempt of Court for failing to cooperate.
Where and when do I go to Court for my Meeting of Creditors?
The date, time and location of your “Meeting of Creditors” appears on the Notice of Meeting of Creditors you received in the mail. If you have lost your copy, please call our office and we will be happy to email you a copy. Please note that any OTHER Court hearings besides the Meeting of Creditors will usually be held at a different location, so check with your attorney before you go to Court. Generally, the location of your meeting is determined by what county you live in.
ATHENS Division: If you live in any of the following counties, your case will be assigned to the Athens division, and your meeting of creditors will be held at The Classic Center, 300 North Thomas Street, Athens, GA 30601: Franklin, Hart, Elbert, Madison, Oglethorpe, Clarke, Oconee, Greene, Morgan, Walton. Click here for directions to the Classic Center.
ATLANTA Division: If you live in any of the following counties, your case will be assigned to the Atlanta division, and your meeting of creditors will be held on the Third Floor of the Russell Federal Building at 75 Spring Street, Atlanta, Georgia 30303: Cherokee, Clayton, Cobb, DeKalb, Douglas, Fulton, Gwinnett, Henry, Newton, Rockdale. Click here for directions to the Russell Federal Building.
GAINESVILLE Division: If you live in any of the following counties, your case will be assigned to the Gainesville division, and your meeting of creditors will be held in Room G 18, United States Courthouse, 121 Spring Street, Gainesville, Georgia 30501: Banks, Barrow, Dawson, Fannin, Forsyth, Gilmer, Habersham, Hall, Jackson, Lumpkin, Pickens, Rabun, Stephens, Towns, Union, White Click here for directions to the United States Courthouse in Gainesville.
NEWNAN Division: If you live in any of the following counties, your case will be assigned to the Newnan division, and your meeting of creditors will be held in the Hospitality Suite at the Comfort Inn, 590 Bullsboro Drive, Newnan, Georgia 30265: Carroll, Coweta, Fayette, Haralson, Heard, Meriwether, Pike, Spalding, Troup Click here for directions to the Comfort Inn in Newnan.
ROME Division: If you live in any of the following counties, your case will be assigned to the Rome division, and your meeting of creditors will be held at The Forum, Room 1 B, 2 Government Plaza, Rome, Georgia 30162: Bartow, Catoosa, Chattooga, Dade, Floyd, Gordon, Murray, Paulding, Polk, Walker, Whitfield. Click here for directions to the Forum.
What is an “Objection to Discharge” and what should I do if someone files one?
An objection to discharge or to the dischargeability of certain debts is considered a separate lawsuit (an adversary proceeding) within the bankruptcy and may result in a trial before the judge assigned to the case. It is effectively an attempt to prevent you from eliminating the debt you owe to one or more creditors. In a Chapter 7 case involving an individual debtor, the creditors generally have sixty (60) days from the first date set for the meeting of creditors to object to the discharge of the debtor and/or the dischargeability of a specific debt. If the deadline passes without any objections to the debtor’s discharge being filed, the Court may issue the discharge order. If any objections to the dischargeability of specific debts are filed, they will be heard by the Court, but will not delay the granting of a discharge with respect to other debts. If anyone files an Objection to Discharge in your case, you should contact an attorney immediately, as there may be extremely adverse consequences if you fail to respond in a timely manner.
What is a “Reaffirmation Agreement” and how does it work?
A Reaffirmation Agreement is an agreement by which a bankruptcy debtor becomes legally obligated to pay all or a portion of an otherwise dischargeable debt. Such an agreement must generally be filed within sixty (60) days after the first date set for the meeting of creditors. If the reaffirming debtor is not represented by an attorney, the debtor or creditor must file an application for approval of the agreement, along with a request for hearing. You must appear in person at the hearing. The judge will ask you questions to determine whether the reaffirmation agreement imposes an undue burden on you or your dependents and whether it is in your best interests. Since reaffirmed debts are not discharged, the Bankruptcy Court will normally only reaffirm secured debts where the collateral is important to your daily activities. Reaffirmation agreements are strictly voluntary. They are not required by the Bankruptcy Code or other state or federal law. You can voluntarily repay any debt instead of signing a reaffirmation agreement, but there may be valid reasons for wanting to reaffirm a particular debt. Since a reaffirmation agreement takes away some of the effectiveness of your discharge, legal counsel is advisable before agreeing to a reaffirmation. Even if you sign a Reaffirmation Agreement, you have a minimum of sixty (60) days after the agreement is filed with the Court to change your mind. If your discharge date is more than sixty (60) days after the agreement is filed with the Court, you have until your discharge date to change your mind. If you reaffirm a debt and fail to make the payments as agreed, the creditor can take action against you to recover any property that was given as security for the loan and you may remain personally liable for any remaining debt.
Click here to download or complete the Reaffirmation Agreement.
What is “Redemption” and how does it work?
Redemption allows an individual debtor (not a partnership or a corporation) to keep tangible, personal property intended primarily for personal, family, or household use by paying the holder of a lien on the property only the amount of the allowed secured claim on the property, which typically means the value of the property. Otherwise, in order to retain the property, the debtor would have to pay the entire amount of the secured creditor’s debt, do a reaffirmation agreement and become legally obligated on the debt again. For example, if you owe $20,000 on your car, but the car is only worth $12,000, you may be allowed to buy it from the lienholder by paying them only the $12,000 that the car is worth. The property redeemed must be claimed as exempt or abandoned. With redemption, a debtor can often get liens released on personal household possessions for much less than the underlying debt on those secured possessions. Unless the creditor consents to periodic payments, redemption must generally be made in one lump sum payment to the creditor. Our office charges an additional attorney’s fee to file a Motion to Redeem property, which we will discuss with you before you elect to proceed.
What does it mean if a case is dismissed?
A dismissal order ends the case. Upon dismissal the automatic stay ends and creditors may start to collect debts, unless a discharge is entered before the dismissal and is not revoked. An order of dismissal itself will not free the debtor from any debt. Often, a case is dismissed when the debtor fails to do something that is required (such as show up for the creditors’ meeting, answer the Trustee’s questions honestly, produce books and records the Trustee requests), or if it is in the best interests of the creditors. Unless the debtor appeals the order or seeks reconsideration of the order within ten (10) days after entry of the order, the Clerk will automatically close the case.
What can I do if a creditor keeps trying to collect money after I have filed bankruptcy?
If a creditor continues to attempt to collect a debt after the bankruptcy is filed in violation of the automatic stay, you should immediately notify the creditor in writing that you have filed bankruptcy. In addition, you should provide them with the case name, number and filing date, or a copy of the Petition that shows it was filed. If the creditor still continues to try to collect, the debtor may be entitled to take legal action against the creditor to obtain a specific order from the Court prohibiting the creditor from taking further collection action. Further, if the creditor is willfully violating the automatic stay, the Court can hold the creditor in contempt of Court and punish the creditor.
Where can I get advice about bankruptcy?
The best course of action is to schedule an appointment with an attorney who practices within the area of bankruptcy. Our attorneys provide an initial consultation for free. You should not rely exclusively on the information you get from a book or website (even this one) when it comes to such an important decision.
Overview | Types of Bankruptcy | Prepare to file | After filing