Bankruptcy attorney Ben Tobey answering the question: Can i transfer nonexempt property out of my name before filing bankruptcy to protect it?
For many debtors, filing for bankruptcy is their only option to get much-needed relief from debt. However, many are hesitant to file because they do not know what happens after filing for bankruptcy.
Speak with a Charlotte bankruptcy attorney at Arnold & Smith, PLLC, to discuss the bankruptcy process in North Carolina.
Once you file for bankruptcy, your creditors will receive a Notice of Bankruptcy informing them that you have filed a bankruptcy petition. The court will mail the Notice to you, your attorney, and all the creditors mentioned in your petition.
The Notice will also inform the interested parties of the scheduled meeting of creditors, also known as the 341 meeting.
The Court Will Issue an Automatic Stay Order
An “automatic stay” is a court-issued order intended to prohibit creditors from contacting the bankruptcy filer. The court’s automatic stay order prohibits and stops all collection actions and any currently pending legal actions against the debtor.
The automatic stay prohibits debt collector agencies and creditors from contacting you and sending you letters, emails, or phone calls demanding to repay the debt.
What Happens to a Foreclosure Action After Filing for Bankruptcy?
If there is an ongoing foreclosure action against you, the state court will receive a “suggestion of bankruptcy” informing it of your bankruptcy filing.
In other words, the court cannot proceed with the foreclosure action until your bankruptcy case is over.
How to Deal with Creditors After Filing for Bankruptcy?
If a creditor reaches out to you after your filing, provide them with your bankruptcy case number and give them the contact information for your attorney.
Unfortunately, it is not uncommon for creditors to continue harassing debtors with phone calls or collection letters even after the court-ordered automatic stay. When this happens, make sure to keep a record of the creditor’s attempts to harass you or engage in collection actions.
What to Expect at the Meeting of Creditors?
Once you file a bankruptcy petition in North Carolina, a trustee assigned to your case will set up the 341 meeting. The meeting of creditors is usually scheduled three to four weeks after filing the petition.
During the meeting, the trustee and your creditors will ask you questions about your bankruptcy case, debts, and financial situation. Your presence at the meeting is mandatory. However, if you cannot attend a meeting of creditors for a legitimate reason, your attorney may be able to help you reschedule it.
If you fail to attend the 341 meeting, your bankruptcy case will be dismissed.
What Happens After the Meeting of Creditors?
After the meeting of creditors, you will be required to complete a debtor education course. Once you complete the course, you will have to submit the certificate of completion to the court. After the meeting, your creditors have a specified number of days to file an objection to prevent the discharge of your debts.
Speak with a Charlotte Bankruptcy Attorney
Filing for bankruptcy without an attorney can be scary and confusing. That is why you should consult with a Charlotte bankruptcy attorney to know what to expect after filing for bankruptcy. Contact our attorneys at Arnold & Smith, PLLC, to schedule a case review. Get a phone, in-person 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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