What is the Timeline?
Chapter 7/13 Meeting of Creditors is set for about one month after filing. Chapter 7 discharge in about 3-4 months, Chapter 13 discharge in 3-5 years.
What is the Process?
You need to come to the office for a total of 3 appointments, the Initial consultation, the Questionnaire appointment, and the Signing appointment. If filing jointly, both parties need not come to the first 2 appts. The meeting of Creditors is the only required court appearance. You must have official photo I.D. and proof of SS#. You must complete the 2nd Credit Counseling session within 45 days of Meeting of Creditors or case is closed without discharge & must be reopened (new filing fees, motion, etc.)
What is discharged?
Unsecured debt, including credit cards, medical bills, repo/foreclosure deficiencies and certain taxes (if old enough and timely filed). Student loans not backed by the government. Recent (within 3 years) tax debt, family support obligations, criminal fines/penalties and government-backed student loans are NOT dischargeable.
What Effect does this have on my Credit?
Chapter 7 can stay on report up to 10 years, but I can show how to rebuild credit in 1-2 years.
Chapter 13 stays up to 7 years. The payment history w/Trustee is important when trying to re-fi, etc. Must generally wait at least 1 year to re-fi out of 13.
The majority of our cases are Chapter 7. Some people will call saying they want to file Chapter 13, but when you realize what consists of (3-5 year plan making monthly payments to the Trustee), they opt for Chapter 7 if they are eligible. Just because Debtors’ income is above the California median does not mean they will have to file a Chapter 13. If they have enough legitimate expenses, they may still qualify for Chapter 7. If they do need or want to file Chapter 13, it is still better than other programs offered by companies that negotiate with creditors or offer consolidation plans.
