Assistants and paralegals spend much of their time getting the petition ready. Clients, however, mostly want to know what happens next. Understanding the stages after filing helps you answer practical questions, keep deadlines and know what to flag for the attorney. The timing and details vary by court, chapter and trustee, so treat this as a general outline.
1. The automatic stay
When a petition is filed, an automatic stay generally takes effect. It is a court-imposed pause on most collection activity, such as calls, lawsuits, wage garnishments and many repossessions. It has exceptions and limits, and a creditor can ask the court to lift it. Questions about how it applies to a particular debt or situation are for the attorney.
2. Notice to creditors and appointment of a trustee
The court sends notice of the case to the creditors listed in the schedules. This is one more reason a complete creditor list matters: a creditor who is missing may not be notified. A trustee is assigned to review the case. In Chapter 7 the trustee looks at the debtor's assets and whether anything should be liquidated for creditors. In Chapter 13 the trustee also collects and distributes the plan payments.
3. Trustee document requests
Trustees often ask for documents shortly before the meeting of creditors, such as recent pay records, tax returns and bank statements. Deadlines are short. A good office tracks the request on the day it arrives and sends the client a clear list.
4. The meeting of creditors (341 meeting)
A few weeks after filing, the debtor attends a short meeting, now commonly held by phone or video, at which the trustee asks questions under oath. The debtor is generally expected to bring photo identification and proof of Social Security number, and to be familiar with the petition they signed. Creditors may attend but often do not.
The attorney usually prepares the client. A helpful assistant sends reminders, collects the documents the trustee asked for and notes any amendments that the attorney should consider before the meeting.
5. Amendments
If a mistake or omission turns up, whether the debtor remembered another creditor or an account appears in a document, the schedules can usually be amended. Prompt amendment is far better than waiting for a trustee to find the problem. This is where an accurate original petition saves everyone time, as discussed in common petition errors.
6. Debtor education and other requirements
Debtors are generally required to take a credit counseling course before filing and a financial management course before receiving a discharge. The certificates need to be filed within the deadlines, and missing them can mean a case closes without a discharge. Include the course on your tracking list from day one.
7. Secured debts, reaffirmation and surrender
In Chapter 7, the debtor states what they intend to do with property that secures a debt, such as keeping a car and continuing payments, surrendering it, or in some cases reaffirming the debt. These choices have consequences, so they are decided by the attorney and client.
8. Discharge or plan completion
In a typical Chapter 7 case, if nothing blocks it, the discharge is entered some weeks after the meeting of creditors, and the case then closes. In Chapter 13 the discharge comes after the debtor completes the plan, which commonly runs three to five years. See Chapter 13 plan basics. Not every debt is discharged, and some cases are dismissed instead, so the attorney should explain what to expect.
What to keep track of
- The date of the meeting of creditors, and what the trustee requested.
- Deadlines for courses, amendments and any statements of intention.
- Client contact, so letters and notices are not missed.
For the work that comes before filing, see a Chapter 7 workflow from intake to filing. For the difference between Chapter 7 and Chapter 13, see our primer. Attorneys who want help with the front end of this process can hire a virtual bankruptcy assistant, and anyone who wants to build these skills can join NAVBA.
This article is general information about bankruptcy practice, not legal advice. Local rules, trustee preferences and state law vary, so confirm current requirements for your jurisdiction.
