{"id":647,"date":"2017-10-13T05:48:54","date_gmt":"2017-10-13T05:48:54","guid":{"rendered":"https:\/\/www.karinalucidlaw.com\/?p=647"},"modified":"2023-09-26T10:14:49","modified_gmt":"2023-09-26T10:14:49","slug":"how-does-the-process-of-filing-for-individual-11s-work-part-1","status":"publish","type":"post","link":"https:\/\/www.karinalucidlaw.com\/how-does-the-process-of-filing-for-individual-11s-work-part-1\/","title":{"rendered":"How Does the Process of Filing Chapter 11 Bankruptcy (Individual) Work? (Part 1)"},"content":{"rendered":"
After you\u2019ve determined that filing Chapter 11 bankruptcy is the best way to handle your debt issues, what\u2019s next? How does the process work? The New Jersey Bankruptcy Court\u2019s website: www.njb.uscourts.gov<\/a> provides an excellent breakdown of the process. This 2-part blog post will provide you with some easy to follow guidance and help you better understand the process. Let’s begin reviewing some of the preliminary steps.<\/p>\n When you file for Chapter 11 as an individual, you will need to attend an on-line credit counseling course. You must also obtain a certificate of completion for your credit counseling course. You have to take the course by an approved agency within 180 days prior to filing your case. During this process, your credit counseling agency will help develop a repayment plan. However, this repayment plan is not likely to look anything like the Plan you submit with your Disclosure Statement in an Individual Chapter 11 case. It is for \u201cinformational purposes\u201d only!<\/p>\n To begin, you\u2019ll need to prepare a petition disclosing all of your assets and liabilities, income and expenses. Also included is a detailed statement of your financial affairs. A husband and wife may file a joint petition or individual petitions. It is important to have your attorney assist you with gathering all of the necessary documentation to support your petition. A lawyer will also help determine if you should file a joint petition or not.<\/p>\n Next, you file your petition with the bankruptcy clerk\u2019s office. The filing of the petition triggers the Automatic Stay. The Automatic Stay is an injunction that arises automatically, the moment your bankruptcy petition is filed. It prohibits most creditors from continuing collection efforts against you or your assets. A creditor can seek relief from the automatic stay<\/a> by filing a motion with the Court. If the bankruptcy judge grants the motion, the creditor can proceed with their collections efforts. It should be noted that collections efforts are construed very broadly by the Bankruptcy Code and include ANY action against property of the debtor, including continuing with court proceedings (other than criminal, divorce or support proceedings), repossessions, wage garnishments, and bank levies, to mention a few.<\/p>\nCredit Counseling<\/strong><\/h4>\n
Preparing Your Chapter 11 Petition<\/strong><\/h4>\n
Monthly Operating Reports<\/strong><\/h4>\n