What happens once you file?

[Confused14]

Regarding the list of creditors (the one that has names and addresses), do they all get notified of your filing for chapter 7? What exactly happens once you file the paperwork? Who gets notified, how do they get notified, etc. Do they get a copy of your filing papers? Please explain to me the process and what options the Creditors have. Thanks.

[AngelinaCat]

Hi Confused14:

Once you file, the court sends out a notice to all of the creditors you listed. In that notice, are instructions on what to do and how to proceed if one or more of them want to be kept notified of the progress of your case. Some will want to file a claim so that when and if any money become available, they will be in the pecking order for the monetary distribution. They will have 60 days from the date of your 341 to file a claim or objection to discharge of the debt.

If the creditor is a lien holder on a car that is going to repo'd or a home is going to be fooreclosed on, the creditor will file a motion to have the Automatic Stay lifted so that they can proceed with the repossesion or foreclosure. I have also read here that they have to do that as a formality before they can auction the car off.

I hope this helps. Good luck to you.

[b_girl]

Do you have an attorney, or are you pro se? If you have an attorney, they will handle the paperwork for you..that's what you paid the big bucks for. If you're pro se..well, I guess it's you, but I don't have a clue about pro se. We hired an attorney, so what happened in our case is that the calls (and mailings) stopped almost immediately and a couple of weeks later we received a letter from the court giving us our BK # and court date. This letter is the one which was also sent to creditors to notify them of the 341, so it was a little confusing to us at first. That was it, other than talking with our attorney a few times regarding re-affirmations and getting the last of our paperwork together (trustee asked for some additional paystubs, etc.)

[Confused14]

Thank you for your respone. So basically they just get a notice, nothing else? Do these creditors get copies of any part of my filing package? For example, do they get access to the personal info that's in it? I really don't want 1 creditor (mortgage company) in particular to have access to any personal info since I don't trust them and the people who work for them. I'm new to this and I'm in quite of a mess. I just retained an attorney and I signed the papers yesterday. I believe he's filing for me today or tomorrow. I can't even begin to express my worry and nervousness!

[b_girl]

As for what the creditors will do before and after the 341, it depends on your lender. We haven't heard a word from any of our creditors. We initially were going to re-affirm almost all of our secured loans, but fortunately we saw the light (thanks to the board) and only re-affirmed one out of the 5 (and that was only because it was necessary in order to keep the home). That may have stopped our creditors from applying for any relief of stay (yet). We voluntarily gave back one vehicle when we realized we weren't going to keep it (we were able to replace it) but haven't heard from the other auto lender yet. We're hoping they wait till discharge to take action..we're not quite ready to relinquish it yet.

HSBC tried to bully us into re-affirming our furniture and electronic purchases, but we refused and they did not show up at our 341. I doubt they'll come after any of it, as these items are now 4-5 years old, therefore considerably depreciated. Your situation might be different, depending on your creditors, the items and the amounts involved. I would check with your attorney after a few weeks to see what is up...we didn't know about HSBC until we called our attorney about the re-affs and he informed us about what they were trying to do. If a relief from stay is filed, you will receive notification from the court of this, so there will be some warning that it is happening. Good luck!

[b_girl]

Thank you for your respone. So basically they just get a notice, nothing else? Do these creditors get copies of any part of my filing package? For example, do they get access to the personal info that's in it? I really don't want 1 creditor (mortgage company) in particular to have access to any personal info since I don't trust them and the people who work for them. I'm new to this and I'm in quite of a mess. I just retained an attorney and I signed the papers yesterday. I believe he's filing for me today or tomorrow. I can't even begin to express my worry and nervousness!

I'm no expert, but I think all they get is that generic letter, which you will receive a copy of as well. If I'm wrong, someone please correct me.

[AngelinaCat]

Unfortunately, your paperwork, once filed, is Public Record. Anyone can go to the courthouse and look it up. Also, if they want to bother to get a PACER account, they can look at it there too. It *stinks* but unfortunately thats the way its is.

[Confused14]

[BKdinOhio]

Listen you will NOT be prosecuted or put into jail for being defrauded. You reported the crime, and since they've been known for doing it you will not be the one that the the authorities will come after.

Sounds like he not only defrauded you and other people he also defrauded his employer. I'm willing to bet that he is being investigated by the Feds into this matter.

Be ready to assist the authorities when they come looking for more evidence to nail this creep. Be open and honest and if they ask to see your financial records, let them. You have nothing to hide. Your going to be opening up your financials to the BK court anyways so you might as well allow them to look IF THEY ASK.

However I seriously doubt they'll take it that far.

Listen to your attorney at every step of the journey.

[b_girl]

Well, goodness! Sounds like you definitely got taken, sorry to hear this. Don't have a clue about what might happen.. ..just consult with your lawyer and try not to stress out too much about a really bad situation. I know it will be hard not to, but don't let them steal your peace of mind and health along with your credit rating.