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What happens after filing bankruptcy?

After your case is filed, there is a meeting with a trustee, the employee of the court whose job it is to determine whether you’re filing bankruptcy in a fair way and whether you have any assets available to pay some money back to your creditors.

In addition, if you have secured debts, like a motor vehicle or home loan, you and your attorney negotiate with those creditors if you want to keep that car or your house. There is a reaffirmation process in which you and the creditor, with your attorney’s help, agree that you will continue to pay the debts and the terms of payment. If it is appropriate to continue to pay the debts, by reaffirming you are taking the debts out of the bankruptcy. You will be responsible to pay that debt as if you did not file bankruptcy.

After the meeting with the trustee, there are meetings with the court. The court conducts phone hearings on any debt that you decide to reaffirm. The court has to decide that you are able to afford to continue to make the payments on those debts. They hold a hearing where you and your attorney call the court, and the court asks you questions.

Following that, if there are any issues with the IRS or student loans, then you and your attorney meet with those agencies to negotiate payments of the those debts. Generally, as a rule, student loans and taxes are not dischargeable, so you have to work with those agencies to make sure you can pay those debts.

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