Bankruptcy Process: From Start to Finish

Action: Retain the Majors Law Group and begin paying attorneys’ fees.

Details: All fees must be paid in full before preparing the final draft, collecting documents, and filing the case. Clients may refer creditors to the creditor verification line (866) 806-7611 or provide the letter of representation from the welcome packet to confirm representation and intent to file bankruptcy.

Note: Bankruptcy protection (automatic stay) is not in effect until fees are paid, the case is filed, and a case number is assigned by the bankruptcy court.

Duration: Varies based on client’s payment schedule.

Action: Continue making essential payments while working toward paying off attorneys’ fees.

Details: Clients should continue to make payments on mortgage, residential lease, insurance, vehicles, and utilities to maintain stability and avoid default or repossession.

What If I Am Being Sued by a Creditor? Bankruptcy protection (automatic stay) does not take effect until the case is filed and a case number is assigned. Clients may refer creditors to the Majors Law Group, but the firm will not notify creditors of the intent to file bankruptcy outside of formal notice provided through the bankruptcy court upon filing. It is the client’s choice to notify creditors of bankruptcy representation. The law firm will not advise on how to respond to civil matters such as a summons and complaint, motion for default judgment, or motion for summary judgment. Clients are typically advised that civil matters will stop once the bankruptcy case is filed and the automatic stay is in effect. To expedite filing and activate the automatic stay, clients are encouraged to pay off attorneys’ fees and provide all required documents as soon as possible.

Important Note: CLIENT IS TO PROVIDE ALL DOCUMENTS ELECTRONICALLY TO OUR PORTAL AS DOCUMENTS SUBMITTED TO THE TRUSTEE ARE ALL ELECTRONIC. OUR LAW FIRM DOES NOT ACCEPT PHYSICAL DOCUMENTS AS THEY WILL NOT BE SCANNED OR REJECTED AND SENT BACK TO CLIENT. CLIENTS AGREE TO SUBMIT ALL DOCUMENTS REQUESTED INCLUDING ALL PAGES IN PDF FORM. OUR PLATFORM WILL ACCEPT SOME PICTURES AND CONVERT TO PDF- BUT MUST BE LEGIBLE AND COMPLETE.

Action: Client provides all required information and documents via the online portal.

Details: Submit financial documents, including pay stubs, tax returns, bank statements, and asset details. Disclose all assets (personal property, real property, business interests, LLCs, stocks, bonds, financial assets) and any money owed to the client (e.g., personal injury claims, back child support, inheritance). Provide current asset values, including screenshots of bank balances on the filing date. Process is ongoing; clients must provide updated documents as requested by the bankruptcy trustee, even after filing. Formal legal advice and answers to client questions are provided during the meeting to review, sign, and file the case.

Requirement: All requested documents must be provided to finalize and prepare the bankruptcy filing.

Action: File the bankruptcy petition, schedules, and statements with the bankruptcy court.

Details: Client reviews, signs, and acknowledges that all information is true and accurate under penalty of perjury. Filing is done electronically with the bankruptcy court. Required disclosures include current values of all assets and any financial interests (e.g., personal injury claims, inheritances). Missing or inaccurate information may lead to case dismissal or conversion from Chapter 7 to Chapter 13. The automatic stay takes effect upon filing, halting garnishments, lawsuits, and foreclosures. Client is assigned a bankruptcy case number. Clients must use the case number to contact their employer or garnishment creditors to stop garnishments; the law firm will not contact these parties outside of bankruptcy court.

Action: Client attends the 341 Meeting of Creditors.

Details: Conducted via Zoom; clients must appear on camera and answer questions under oath about their bankruptcy documents. Provide all documents requested by the trustee. Client must inform the law firm of any changes (e.g., address, receipt of inheritance within 180 days, which may be considered property of the estate).

Timing: Typically scheduled 21–50 days after filing.

Action: Complete post-filing requirements and await discharge.

Details: Complete a debtor education course (required for discharge). Trustee determines if the case is “no-asset” (no assets to liquidate) or “asset” (trustee liquidates non-exempt assets). Discharge is typically granted 60–90 days after the 341 meeting, closing the case if no further action is needed. Upon case closure, the law firm sends a notice of case closure, serving as formal withdrawal as services are deemed complete. No further legal advice is provided unless a new retainer agreement is executed.

Pre-Filing: Attorney reviews the proposed 3–5 year repayment plan with the client to determine plan payments. The plan must account for priority claims (e.g., taxes, child support), secured claims (e.g., vehicles), and delinquent mortgage payments (paid over 60 months, including past-due amounts).

Post-Filing: Begin plan payments within 30 days of filing, typically via wage directive (or direct payment if self-employed). After the 341 meeting, attorneys review the claims register and resolve trustee objections. A motion is filed to confirm the repayment plan. Plan payments are based on disposable monthly income. Clients must adhere to strict budgeting, and changes in income may adjust plan payments. Clients cannot incur new debt without trustee or court approval. Clients must provide documents as requested by the trustee. If a retirement loan exists, plan payments must increase once the loan is paid off. Discharge is granted after completing the 3–5 year repayment plan.

Tax Returns: All tax returns must be filed and current before filing. In Chapter 13, failure to file subsequent returns may lead to dismissal.

Ongoing Responsibilities: Report changes (e.g., address, inheritance) to the law firm. Provide all requested documents to the trustee, even post-filing.

Creditor Notification: The law firm will not notify creditors of the bankruptcy filing outside of bankruptcy court. Creditors receive formal notice from the court. Clients may provide creditors with the verification number or letter of representation from the welcome packet.

Credit and Tax Advice: The law firm does not repair credit or provide tax advice. Clients may rebuild credit post-filing by self-reporting payments and maintaining a good debt-to-income ratio. The law firm may seek to discharge taxes in some cases, but there are no guarantees of any case outcome.

Scope of Services: The law firm is hired to prepare, file, and advise on the bankruptcy filing. Services do not include defending adversaries, negotiating with the trustee regarding post-petition claims of fraudulent transfers, or preference payments.

Schedule A/B (Assets): Clients must disclose all assets, provide supporting documents, and their values (e.g., personal property, real property, business interests, financial assets).

Means Test / Schedule I (Income): Clients must verify that all income received in the last 6 months is accurate, including wages, 1099 income, retirement account withdrawals, support from friends or family, inheritances, or other sources. Clients must not sign if the information is inaccurate.

Schedule D/E/F (Creditors): Clients must confirm all secured, priority, and unsecured non-priority creditors. The law firm will not conduct background searches; clients must verify accuracy before signing and filing.

Statement of Financial Affairs: Clients must confirm the length of domicile in the state, income for the last 3 years, payments to creditors within 90 days or insiders (such as family or friends) within 1 year, and any property transfers within 2 years or trusts created within 4 years, especially to insiders, which may be scrutinized. If fair market value was not received for a transfer, the trustee may seek to avoid it.

Vehicle Purchases: If a vehicle is purchased within 90 days of filing and the lien is not perfected within 20 days, the client must wait 90 days from lien perfection (or 1 year if financed by an insider) to file, or the trustee may avoid the lien and take the vehicle.

Cash Withdrawals: Clients must account for all cash withdrawals prior to filing. Unaccounted funds may be presumed hidden, and the trustee may seek repayment to the estate.

Gifts and Payments: Clients must review financial records (bank statements, money transfer apps) and disclose any funds gifted within 2 years or paid to insiders within 1 year, as these may be recovered by the trustee.

Perjury Warning: Clients sign all documents under penalty of perjury. Inaccurate or false information risks revocation of discharge, bankruptcy fraud charges, serious fines, and withdrawal of the law firm from the case.

Client Responsibilities: Clients must cooperate and assist the law firm with preparation and filing. The law firm will not obtain or retrieve documents on behalf of the client.