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Carole Friend, Attorney
Click to Access Western KY
Bankruptcy Court Website
Click to Access Lexington KY
Bankruptcy Court Website
10. Case Closed - Soon after your discharge is granted, your case will be closed, you will no longer be liable to most of
your creditors, and you can move on with your life.
9. Final Hearing - You will be informed at this point that your discharge is granted.
8. Financial Management Course - Another 2005 addition to the Bankruptcy Code is the requirement of taking
financial management classes.
7. Secured property is handled - You may be required to give up any property that has an outstanding secured loan.
6. Nonexempt property sold - Money raised by the trustee from the sale of nonexempt property will be passed
onto your creditors and to pay any costs associated with your case.
5. Chapter 7 eligibility confirmed - At this point, the trustee has gathered and reviewed all of your information and
the court makes a decision on whether or not you are eligible for Chapter 7 protection. If the court denies eligibility,
you still may have the option to file Chapter 13 bankruptcy.
4. 341 Meeting (Meeting with creditors) - Anywhere from 20-90 days from filing, you will be required to meet with
the trustee and your creditors so that your creditors can get a better idea of your financial situation. This meeting is
typically very short.
3. Trustee takes over - approximately 1-2 weeks after filing your petition, a court-appointed trustee will take over
your finances. They will review your paperwork and handle any actions to be taken on your property. Around this
time, the court will also set a date for a meeting with your creditors. The new law also requires you to submit a copy
of your most recent tax return to the trustee. Thist must happen prior to the next step in the process.
2. Filing a petition - Submit a petition, along with financial information, to the bankruptcy court in your area. You
will be required to give all property of the bankruptcy estate to the trustee. Once you have completed this part of
the process, an automatic stay goes into place and protects you from being harassed by your creditors.
1. Mandatory credit counseling - Part of the 2005 changes to the Bankruptcy Code added a requirement that you
must receive credit counseling during the 6 month period prior to filing for chapter 7. In some situations, this can
be cut down to within 30 days of filing. Without this credit counseling, your case will end up being dismissed.
Phone: 502 542-2398