Most people have never been to court, and the idea of bankruptcy can feel overwhelming. The good news is that the process follows a clear set of steps, and we guide you through each one. Whittier cases are filed in the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division.
Before you file
Step 1: Your free consultation
We start by listening. Steven Ibarra meets with you, in person or by video, and reviews your debts, income, property and goals. He explains whether Chapter 7, Chapter 13 or another option makes sense. Bankruptcy consultations are free, and you can ask anything.
Step 2: Gathering your documents
Your bankruptcy papers must be complete and accurate, so we need to see your records. Our bankruptcy processor, Annissa Henry, gives you a checklist and helps you track down anything that is missing. A typical list includes:
- Photo ID and Social Security card
- Pay stubs for the last six months
- Federal and state tax returns for the last two years
- Recent bank statements for every account
- Retirement account statements
- Mortgage statements, lease or rental agreement
- Car loan statements and vehicle registration
- Credit card statements, collection letters and medical bills
- Any lawsuits, judgments or garnishment papers
- A list of monthly household expenses
- Information about any property you sold or gave away recently
If you cannot find something, do not worry. We can often help you get copies.
Step 3: Credit counseling
Before you file, you must complete a credit counseling course from an agency approved by the U.S. Trustee. It usually takes an hour or two online or by phone. You must finish it within 180 days before filing, and you will receive a certificate we file with your case.
Filing your case
Step 4: Preparing and filing your petition and schedules
Using your documents, we prepare your bankruptcy papers. These include:
- The petition, which opens your case.
- The schedules, which list your property, debts, income and expenses.
- The statement of financial affairs, which covers recent payments, transfers and other history.
- The means test forms.
- Your exemption choices, which protect your property. See bankruptcy exemptions in Whittier.
- In Chapter 13, your proposed repayment plan.
You review and sign everything under penalty of perjury before we file it electronically with the court.
Step 5: The automatic stay begins
As soon as your case is filed, the automatic stay takes effect. This court order stops most creditors from collecting. Wage garnishments, bank levies, lawsuits, most foreclosures and repossessions, and collection calls must stop. If a creditor keeps contacting you, tell us.
If you are facing a sale or garnishment right now, read about filing an emergency bankruptcy.
After you file
Step 6: The 341 meeting of creditors
About a month or so after filing, you attend the 341 meeting, named after the section of the Bankruptcy Code that requires it. Despite the name, it is not a court hearing, and no judge is there. The trustee asks you questions under oath about your paperwork. Creditors may attend, but they rarely do.
These meetings are now often held by video instead of in person. You will need your photo ID and proof of your Social Security number. We prepare you ahead of time and attend with you. Most meetings are short.
In Chapter 13, there is also a confirmation hearing where the judge decides whether to approve your plan.
Step 7: The debtor education course
After filing, you must complete a second course on personal finance, called debtor education. It is different from the credit counseling you took before filing. Without it, the court can close your case without a discharge.
Step 8: Your discharge
The discharge is the court order that wipes out your eligible debts. In Chapter 7, it usually comes about three to four months after filing. In Chapter 13, it comes after you complete your plan payments, usually three to five years later. After discharge, creditors can never try to collect those debts from you again.
Ready to take the first step?
For answers to common questions, see our bankruptcy FAQs or our Whittier bankruptcy lawyer overview.
Bankruptcy consultations are free, and Steven Ibarra often has same-day appointments. Contact us or call (562) 612-7806. We are available 24/7. Hablamos español.