Filing a Chapter 7 bankruptcy case is not an insignificant event. Most bankruptcy cases are filed or initiated online. At the moment that the filing is issued a case number, the automatic stay goes into effect. This is a powerful mechanism found in federal law that stops most collection activity by most creditors. If you file bankruptcy, then your creditors are barred from calling you on the phone, sending you any correspondence, or even filing a lawsuit against you in court.
Once you file your Chapter 7 bankruptcy, you receive a case number and your case is assigned a bankruptcy trustee. This trustee provides an oversight function to your bankruptcy filing. The trustee’s purpose is to ensure that any general unsecured creditors receive the full amount to which they are legally entitled. The trustee will also review your bankruptcy documents and may request additional information to verify their contents. The trustee also conducts the meeting of creditors, more commonly referred to as a “341 Meeting” by attorneys and judges.
Protection from your creditors begins immediately after filing a Chapter 7 bankruptcy case. Collection for any debt, whether it is a medical bill, credit card debt, personal loan, or any other unsecured debt must STOP!. Any wage garnishments, bank levies, and repossessions must be discontinued. In appropriate instances, the property must be returned to the filer.
Fortunately, soon after filing a Chapter bankruptcy case, you may begin rebuilding your credit. Specifically, as soon as the court enters an order for your bankruptcy discharge. It is not unrealistic to improve your credit score within one to two years of filing bankruptcy.
Missed payments lower your credit score. Once you receive a discharge, your credit score will improve from the absence of these missed payments and the underlying discharged accounts showing a zero balance.
Soon after receiving your Chapter 7 discharge, you will receive offers for secured credit cards, also known as prepaid cards, which require a cash deposit that serves as the credit limit for the account. You may also receive offers for unsecured credit cards, but they will likely have high-interest rates with expensive annual fees.
The experienced attorneys at the Morrison Law Group can help you determine if filing a Chapter 7 bankruptcy case is right for you. We work with clients during and after their bankruptcy case to ensure that they truly receive the best fresh start possible.
The Morrison Law Group’s website contains everything you need to help anyone file a Chapter 7 or Chapter 13 bankruptcy case. The Morrison Law Group is open from 8:00 a.m. to 5:00 p.m. Monday through Friday. Our attorneys and staff are standing by and ready to help any Utah resident file a bankruptcy case from the comfort and safety of their home. Each of our locations in Ogden, Logan, Sandy, Orem, and St. George are set up so you can do everything from home. Call 801.456.9933 today to schedule a free consultation. We are Utah’s only statewide bankruptcy law firm and serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.