Filing Bankruptcy: Your Responsibilities

Two of the biggest advantages to filing bankruptcy are the automatic stay of all legal actions against you, and the legal consultation you receive from the bankruptcy attorney you hire. The automatic protection from your creditors and the assistance you receive in negotiating with creditors and resolving your debt, along with the ability to stop repossessions and foreclosures, are just a few of the benefits you receive from filing bankruptcy. While the court and your bankruptcy trustee are responsible for most of what happens when you file bankruptcy, there are certain things for which you will be individually responsible.

Preparation

You will be required to spend some time and effort in preparing to file for bankruptcy. While an experienced bankruptcy attorney will not expect you to know what documents and paperwork will be required, organizing your financial records ahead of time will save you and your attorney a lot of time. Your bankruptcy attorney will assist you in completing your bankruptcy petition, but gathering your bank statements, tax returns, pay stubs, deeds, mortgages statements, credit card bills and copies of any lawsuits you are involved in is your responsibility alone.

Transparency

Your financial details are important to the bankruptcy process. An analysis of your financial situation will determine how your case proceeds. For this reason, the bankruptcy petition asks for detailed information regarding your income, debts and assets. In order to benefit the most from filing bankruptcy, you need to supply thorough and accurate responses to questions regarding your finances. Withholding any information can result in some debt not being discharged, your case being dismissed altogether, or suspicions of fraud on your part. So, it is extremely important that you be totally transparent in regards to your financial situation in order to get the most out of filing for bankruptcy.

Debt Counseling and Education

Those seeking protection under federal bankruptcy statutes are required to take pre-filing debt counseling and post-filing debtor education courses. It is your responsibility to complete these courses and file the necessary certificates of completion with the court.

The 341 Meeting

As part of the bankruptcy process, you will be required to attend a meeting with your creditors, also known as a 341 meeting. At this meeting, you will be required to answer queries from your creditors regarding your ability to satisfy your debts. It is your responsibility to attend and to provide accurate, honest answers to any questions asked by your creditors or the bankruptcy trustee.

Timeliness

When you file for bankruptcy you will be responsible for meeting each deadline. The benefits of filing bankruptcy do not accrue to you until you file. Hiring a bankruptcy attorney alone will not protect you from your creditors. You are responsible for filling out any paperwork your attorney provides in timely manner. In addition, you will be expected to show up for all of your appointments with your bankruptcy attorney so that he or she can obtain the information needed to proceed with your case expeditiously.

Making Your Payments

Finally, you will be responsible for paying your legal fees, court costs, and, in the case of Chapter 13 bankruptcy, debt payments to your trustee. It is not uncommon for those who are seeking bankruptcy protection to be short of cash and to have difficulty affording the costs associated with filing for bankruptcy. It is your responsibility to consult with your bankruptcy attorney when you believe you will be unable to pay these costs. He or she may be able help in some way. This is especially important if you cannot make your debt payments under chapter 13 bankruptcy, since failure to do so may result in the dismissal of your case and the restoration of your debt to you.