When you are ready to file bankruptcy, it all begins with the filing of a bankruptcy petition. The forms and schedules that get filed with the court make up just the bankruptcy basics. However, there is nothing basic about handling a chapter 7 or chapter 13 bankruptcy case from start to finish. There is great detail that must be put into the preparation of the documents. If the information is missing or worse, untruthful, the case can turn into a criminal case overnight. I always advise my clients to review the information carefully. I do not want the debtor to sign a document that is either untruthful or lacking the required detail for administration.
After the petition is filed, the Clerk of the U.S. Bankruptcy Court will set a date known as the 341 meeting of creditors. This is the date where creditors have an opportunity to ask the debtor questions under oath. In reality, few creditors ever appear at the meeting. If the creditor really wants to examine the debtor at length, he can petition the court to allow for a rule 2004 examination of the debtor. This is a separate hearing where the creditor has the exclusive right to question the debtor with little or no time constraints. The 2004 examination is not very common as far as Illinois bankruptcy cases go. I would suggest that less than 1% of all cases result in such an examination.
After the case is filed and prior to discharge, the debtor must complete a two hour, personal financial management instruction course. This course must be completed; otherwise, the case will close without a discharge. If a case closed without a discharge, the creditors are free to pursue the debtor once again. The debtor will have wasted all the time and money required for filing only to not get the benefit of the bankruptcy filing. As a Chicago bankruptcy lawyer, I recommend that debtors complete the financial management course prior to the meeting of creditors. This way, there is no chance that the case can close without discharge.
If you find yourself in the position of having to claim bankruptcy, you want to make sure that you are following all of the advice of your attorney. Timing of events is critical to the success of your case. There are things that you must do and must provide prior to filing. There are also things that you must do and often provide after the case has been filed. If you have questions, make sure that you ask your attorney. Do not try to file bankruptcy yourself. You may find that you have done more harm than good. It is better to pay for a qualified attorney who will guide you through the process with skill and care.
