What Happens After Filing Chapter 7 Bankruptcy?

Bankruptcy attorney Ben Tobey answering the question: What is the difference between a Chapter 7 and a Chapter 13 bankruptcy?


For many debtors, filing Chapter 7 bankruptcy is the best debt relief option. However, many debtors do not understand what happens after filing for bankruptcy.

100-dollars-Charlotte-Monroe-Lake-Norman-Bankruptcy-Lawyers-300x225Knowing what happens after you file Chapter 7 bankruptcy in North Carolina can make the process less intimidating, which is why it is essential to contact a skilled attorney to learn what to expect after filing for bankruptcy. At Arnold & Smith, PLLC, our experienced bankruptcy attorneys can help you understand your debt relief options and protect your rights when filing Chapter 7 bankruptcy.


What to Expect After Filing Chapter 7 Bankruptcy

We have prepared a list of things to expect when you file for bankruptcy in the state of North Carolina.


Appointment of a Bankruptcy Trustee

The first thing that happens after you file Chapter 7 bankruptcy is that the court will assign a bankruptcy trustee to oversee your bankruptcy filing. The trustee’s job is to review your paperwork and prepare questions for the meeting of creditors.


Automatic Stay

One of the most notable benefits of filing Chapter 7 bankruptcy is an automatic stay. After filing for bankruptcy, an automatic stay will go into effect to prevent creditors from continuing to pursue collecting debt against you. An automatic stay also prohibits the following actions:

  • Initiating or continuing legal proceedings;
  • Repossessing your car or other property;
  • Filing a foreclosure lawsuit against your home;
  • Harassing or otherwise contacting you via mail or by phone;
  • Enforcing liens against your property;
  • Having your wages garnished; or
  • Having your bank accounts levied.


Creditor Meeting

After you file for bankruptcy, the court will schedule the creditor meeting. During the meeting, the bankruptcy trustee assigned to your case will ask you questions about:

  • Your financial circumstances;
  • Your property; and
  • Your paperwork.

While the idea of having to answer the trustee’s questions may seem scary, you can protect your interests by hiring a North Carolina bankruptcy attorney. Your creditors may attend the meeting, which is why it is vital to have someone on your side.


Reaffirmation Agreements

After the meeting, creditors may send you reaffirmation agreements so that you can reaffirm the debt that would not be discharged in a Chapter 7 bankruptcy. It is best to consult with an experienced bankruptcy lawyer to determine if signing reaffirmation agreements is a good idea.


Personal Financial Management Course

One of the requirements of filing Chapter 7 bankruptcy in North Carolina is that the debtor must pass a personal financial management course. Without taking the course, you cannot receive the discharge of debt.


Debt Discharge

The sixth thing that happens after filing for bankruptcy is the discharge of qualifying debts. Many types of debt can be discharged through a Chapter 7 bankruptcy, some exceptions include:

  • Certain taxes
  • Support obligations, including child support and alimony
  • Debts to government agencies
  • Student loans
  • Debts for causing willful or malicious injury

If you are considering filing Chapter 7 bankruptcy but do not know what happens after filing the paperwork, speak with our North Carolina bankruptcy attorneys at Arnold & Smith, PLLC. We are prepared to answer your questions and help you understand your options when filing for bankruptcy. Get a phone or video consultation by calling at (704) 370-2828 to speak with our detail-oriented and well-versed lawyers, or fill out our contact form. Now taking cases throughout North Carolina with offices in Uptown Charlotte, Mooresville and Monroe.






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