There’s a lot of stress involved in the decision to declare bankruptcy. In fact, it may have taken you several weeks, or months, to arrive at the decision to petition the courts for bankruptcy case, so you won’t have focused too much on what comes afterwards.
It is, however, very important to understand a basic timetable for what takes place after you’ve submitted your filing.
Day 0
The court assigns a unique number to your bankruptcy case, which can be quoted to creditors if they’re looking for payment. This is a clear indication for them that you are petitioning to have your debts discharged.
A court-appointed trustee will then be assigned to your case. The trustee’s job is to ask you questions about your existing debts, ensuring that you’re being honest with the courts. Any garnishing of your wages will stop once your attorney sends copies of your filings to the relevant parties. All lawsuits against you will also stop at this point – part of the automatic stay on proceedings that your filing entitles you to.
Day 28
Somewhere between 4 and 6 weeks after your filing, you will be invited to appear at a court meeting with your creditors. This is often referred to as a ‘341 meeting’ and might seem a bit daunting. But the truth is that very few creditors actually attend these meetings.
Your “creditor meeting” will usually last just a few minutes, but if the court is very busy you might have to wait around all day to be seen. So, be prepared to take the entire day off work, regardless of what time your actual meeting is set for.
During this meeting the trustee will ask you a number of questions to ensure that you are being completely honest in your petition. What they’re looking for are any undisclosed assets that should have been included in your original filing.
Day 45
You must complete a financial management/financial counseling course within 45 days of filing for bankruptcy. Successfully taking this course is a key element of having your debts discharged, or mitigated.
Day 60
The court will issue your discharge of debt to your creditors no later than 60 days after your 341 Meeting. You now have a clean financial slate.
If you require an update on the status of your New Jersey bankruptcy filing, the very best person to speak to is your attorney. They will have already dealt with your bankruptcy trustee, and will also be more than familiar with the timelines involved in cases of this type.
You are also free to contact your bankruptcy trustee directly, but there’s a limited amount of information they can share with you. Your trustee cannot provide you with legal advice but can clarify any procedural matters you might be unsure of.