Legally, banks can repossess property, foreclose on a lien, and take other adverse action after only one missed payment. So, many people need to quickly file Chapter 13 bankruptcy and take advantage of the Automatic Stay. In most cases, because the petition and schedules require so much information, filing bankruptcy takes several weeks. However, if needed, an attorney can file an emergency petition, often in a matter of hours.

Chapter 13 does more than stop such adverse actions. Some little-used legal loopholes also help make secured assets, like your house and car, more affordable in the long term. Very few other debt relief alternatives have this same one-two punch which effectively knocks out even the most dreaded and feared creditor.

To reduce their costs, many people rely on do-it-yourself filing or a bankruptcy petition preparer. But only an experienced Athens bankruptcy attorney knows how to maximize your fresh start before, during, and after the bankruptcy itself. So, this partnership pays significant dividends, now and in the future.

Emergency Filings

If a foreclosure sale or an eviction hearing is immediately pending, an Athens bankruptcy lawyer typically files an emergency petition. As outlined below, the full petition and schedules is extensive, to say the least. But an emergency filing usually is only:

• Petition
• Creditor matrix
• Personal declaration
• Attorneys’ fees statement

These four documents convey critical information about the filing. The petition outlines the case, mostly whether it is Chapter 7 or Chapter 13. The creditor matrix is a list of affected moneylenders. This list usually includes both original creditors and subsequent debt-buyers. The personal declaration identifies the debtor, and the attorneys’ fees statement outlines the debtor’s relationship with an Athens bankruptcy lawyer.

The creditor matrix is probably the most important element of an emergency petition. The Automatic Stay is only effective if the creditor, court, sheriff, or other agency receives actual notice of the filing.

Generally, courts give debtors about two weeks to file the rest of the schedules. Missing that deadline could mean dismissal and the premature end of the case.

Full Filings

At a minimum, a Chapter 13 bankruptcy requires about a dozen schedules. Most bankruptcies require more than that. These schedules contain detailed information about the debtor’s assets, liabilities, income, and expenses. 

The proposed repayment plan schedule is probably the most important document in a Chapter 13. The monthly debt consolidation payment must be high enough to retire all secured debt delinquency and most priority unsecured debt delinquency, such as unpaid attorneys’ fees, before the bankruptcy ends. Missing a payment could be grounds for involuntary dismissal.

Three or five years is a long time. Financial circumstances almost always change during such periods. When that happens, an Athens bankruptcy lawyer basically has two options. The judge might grant a motion to reduce the repayment amount. That’s especially true if the original payment amount was higher than it had to be, so the debtor has some maneuvering room. Alternatively, an Athens bankruptcy attorney could convert the case to a Chapter 7. That conversion means no more monthly payments and an almost instant fresh start.

Follow-up Activities and Athens Bankruptcy Lawyers

Filing the petition is only the beginning of the bankruptcy timeline. About six weeks after that filing, the debtor and the debtor’s Athens bankruptcy attorney meet with the trustee (person who oversees the bankruptcy for the judge). Before this meeting, the trustee reviews some financial documents, such as:

• Recent bank statements
• Recent pay stubs
• Recent tax returns

Some trustees require additional documents, such as insurance declaration pages and property deeds. Debtors have a legal obligation to comply with the trustee’s requests. Otherwise, the judge might involuntarily dismiss the case.

A Chapter 13 trustee’s meeting covers several areas. The trustee must eyeball the debtor’s state-issued photo ID and Social Security card. Furthermore, the trustee reviews any red flags which indicate bankruptcy fraud, such as a suspicious transaction (e.g. selling your boat to your brother-in-law for a dollar).

Finally, and perhaps most importantly, the trustee must approve the proposed repayment plan. As long as the proposal meets the minimum requirements, the trustee almost always approves it. And, if that happens, moneylenders usually have no basis for the objection.

Call a Qualified Athens Bankruptcy Lawyer Today

It could take a few hours or a few weeks to file Chapter 13 bankruptcy. For a free consultation with an experienced Athens bankruptcy attorney, contact Morgan & Morgan, Attorneys at Law, P.C. at (706) 843-2905. After-hours, virtual, and home visits are available.