WHAT IS BANKRUPTCY?
Bankruptcy is a remedy provided for in the US Code. Bankruptcy has two main components. First, it provides protection for you from collection actions. This protection is called the automatic stay. This provides protection from collection by any entity including state and federal collectors. The second component is the discharge which gets rid of most debts. In most cases, all debts that the Debtor wants discharged are discharged. Exceptions to discharge include debts for child support, alimony, student loans and some taxes.
WHAT IF I WANT TO KEEP A SECURED DEBT?
If you are filing a Chapter 7 and you wish to keep a secured debt like a vehicle or a house, the creditor will send Hopkins & Holmes, PLLC a Reaffirmation Agreement. Hopkins & Holmes will provide the Reaffirmation Agreement to you. You will need to sign the Agreement and forward back to Hopkins & Holmes. You will be responsible for keeping your payments on the debt current. The reaffirmation of a home loan is $75.00. The reaffirmation of an auto loan is $75.00.
HOW DO MY CREDITORS RECEIVE NOTICE OF MY BANKRUPTCY FILING?
The Bankruptcy Court sends a notice to all of your creditors once the petition is filed.
WHY DO I KEEP RECEIVING STATEMENTS FROM MY CREDITORS?
After the creditor receives notice of your bankruptcy filing, it may take awhile for the creditor to notify their system of your bankruptcy and to stop sending you statements. Just disregard the statements. If you continue to receive statements after your bankruptcy is discharged, you will need to send the creditor a copy of your discharge paper.
WHEN WILL MY BANKRUPTCY BE DISCHARGED?
The Bankruptcy Court will issue you a notice that is headed “Discharge of Debtor.” It is typically sent out 60 days after your Meeting of Creditors if you have completed your Debtor Education Certificate. If you do not obtain the certificate from CCOA, and have Hopkins & Holmes file it with the Court, your bankruptcy case will not be discharged.
WHAT IF MY BANKRUPTCY IS CLOSED WITHOUT DISCHARGE?
You may re-open your bankruptcy case to file the debtor education certificate. There is a fee of $520.00.