The initial filing of bankruptcy in Massachusetts will take place in either the Western Division or the Eastern Division, so call to see which location is the appropriate one for you. The initial filing of the bankruptcy petition will take about two months to process, after which you will be required to attend an initial "341 Meeting," also called a "First Meeting of Creditors," during which the bankruptcy judge will meet with you and your attorney (if you have one) and the representative of each creditor to discuss your situation. You will be questioned as to your financial status and current employment and your potential ability to repay your current debts. Your creditors will have the opportunity to ask any questions they may have. If you do not attend the 341 Meeting, the judge can decide to dismiss your Petition at that time.
If you are filing for Chapter 7 bankruptcy, the creditors will have sixty days to respond to or contest the discharge of your debts. After the sixty days has expired, your bankruptcy will be complete. Usually, the entire process for a Chapter 7 bankruptcy takes about four to five months from filing the Petition to Discharge.
For a Chapter 13 bankruptcy, the discharge is issued only after all debts are repaid. Since this type of bankruptcy is a re-organization of your debts so that you can repay them over time, the discharge may not be issued for three to five years after the filing of the initial Petition.
With a Chapter 13 Plan, you will work closely with the Trustee to repay your debts at a reduced rate over time. All of your debts will be turned over to him to administer, including all credit card accounts, which will be closed so that you cannot continue to increase your debt obligations. You will make one monthly payment directly to the Bankruptcy Court, which the Trustee will then divide up between your various creditors.
In both cases, a Trustee appointed by the Court will determine what assets may be retained by the filing individual. Usually, this will be someone with extensive bankruptcy experience such as an attorney or accountant familiar with the custodial accounting. The Trustee will be the custodian of your assets and in charge of selling any assets above and beyond what is exempt in order to pay off any debts.
One of the most important aspects of filing for either Chapter 7 or Chapter 13 bankruptcy is the "Automatic Stay" issued by the Bankruptcy Court. This is an Order issued to all creditors and collections agencies stopping them from any attempts to collect any money you owe them. They cannot call you, write to, repossess property, or in any way attempt to collect on the debt until the Stay is lifted or the bankruptcy is discharged. In fact, if any creditor continues to try to collect after a Stay has been issued, they can be fined and sued for punitive damages. If you are harassed by creditors after filing for bankruptcy, contact your attorney or the bankruptcy court.
