Step 2: Filing the Chapter 7 Bankruptcy

Filing the Chapter 7 Bankruptcy With the Court

We will file your petition with the US Bankruptcy Court for the Eastern District of Texas electronically. The case is assigned a case number. The minute the case is filed, a court order called the automatic stay is entered stopping all creditors from collecting from you. This includes most wage garnishments, lawsuits, and foreclosures. The automatic stay is powerful. You will be protected from creditors by the power of the Bankruptcy Court. If you have previously filed bankruptcy, the attorney may need to take an extra step to keep the automatic stay in place. The automatic stay may not apply to certain creditors, such as where a child support order was entered for current child support. But it does apply to the vast majority of cases.

341 Hearing aka Meeting of Creditors

Within a few days of filing, the Court will set a date for the “341 Hearing.” All hearings are held in Tyler, Texas. The hearing is set 3-5 weeks after filing the case. In the Eastern District of Texas, two to four hearings every 15 minutes are scheduled. With the exception of complex business cases or problem cases, the hearing is usually short. The trustee has reviewed the paperwork ahead of time and understands your case. An experienced bankruptcy attorney knows what the trustee needs and provides this in advance to the trustee. Accurate paperwork enables the hearings to move at a fast pace. The Trustee has verified the case information ahead of time. If he has questions about assets or income, further information must be provided.

Step 3 of filing your Chapter 7 Bankruptcy.

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