Chapter 7
Bankruptcy Roadmap
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1. A free initial consultation with Attorney Hixson at his office is provided without any
obligation. You will receive information on the bankruptcy process and how it will apply to your individual circumstances. Should you file bankruptcy? Will it benefit you? Should I file Chapter 7 or 13 bankruptcy? These are all questions that can be addressed during your private one-on-one conversation with your attorney John Hixson—not a legal assistant. We will discuss a flat rate fee for your case and agree to payment terms which meet your budget. The initial consultation does not obligate you to go forward, you may find that bankruptcy is not right for you at this time.
2. Should you decide to go forward with Bankruptcy, you will be given a set of worksheets. Following, are the types of information you will be gathering and then listing. As you complete your worksheets, put a question mark by anything you have a question on, or want to discuss with Mr. Hixson. When done, return worksheets to our Law Office.
A. General information Contact information, other personal or business names used in the past six years, and prior bankruptcies. Provide the same information for your co-debtor (if applicable).
B. What you own Include all your property with all the requested details ― real estate, cash on hand, checking accounts, savings, security deposits, annuities, pension, profit sharing, stock, interests in partnerships, bonds, account receivables, support, tax refunds due, etc.; personal property; vehicles, boats, trailers, etc., that you own. Details required:
• Property description
• Your ownership percentage
• Market value
• Value of secured claims against the property
C. What you owe Now make a list of all your creditors and gather all the requested details. This is anyone you owe money to, anyone who has a claim against you, anyone who has a judgment against you, including collection agencies and attorneys representing creditors; and federal and state taxes owed. Details required:
• Name
• Debt description
• Address (correspondance address)
• Debtor(s)
• Account number
• Balance owed
D. Your family and your job Provide marital status and job status of you and your co-debtor (if applicable) and dependant information.
E. Your monthly income List all your income, including payroll deductions for both you and your co-debtor (if applicable).
F. Your monthly expenses Break down all your monthly expenses. Use average figures for utilities, etc.
G. Statement of financial affairs Finally, this part of the worksheet summarizes where you are right now financially and what has happened in recent history.
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3. Additional items to submit ― drop off at Law Office.
A. Your last tax return
B. Check stubs or payment record from your employer for the last two months
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4. Choose a date for the FIRST filing of your bankruptcy. You want your bank account balances to be low (preferably <$300). Call us with this date. Put in on your calendar.
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5. You are required by current Bankruptcy Law to take two bankruptcy courses from an approved agency.
A. Bankruptcy Counseling course ONE - Before you can file a bankruptcy case, you must receive a credit counseling session. So, get it done. (See 5B for course providers)
B. Bankruptcy Education course TWO - After you file your bankruptcy case, and before your debts can be discharged, you must receive financial education. You will need your bankruptcy case number to take this course.
As soon as you complete each course, e-mail or fax the certificate to john@hixsonlawfirm.com or 817-665-9184. Several course choices are:
Dave Ramsey has an excellent Financial Management course which fulfills the requirement for the second course and corresponds with our Recovery Coaching Session. They offer the course by streaming video or DVD. Visit them at www.daveramsey.com/bankruptcy or contact them by phone at 800-480-5902.
GreenPath offers both courses via the Internet and telephone. Visit them at www.greenpathbk.com or contact them by phone at 866-860-4220. (When it asks for the Atty. Name, use "John Hixson". When it asks for a Atty. Code use "76015")
Institute for Financial Literacy offers both courses via the Internet and telephone. Visit them at www.financiallit.com or contact them by phone at 866-662-4932.
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6. After everything above has been completed (accept for the second counseling course), set an appointment to come in and sign your “petition.” Carefully check the documents and your social security number for accuracy during this meeting.
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7. FIRST filing of your bankruptcy on the date you chose. Now you will have a case number - call the Law Office to get it. If creditors call you, give them:
A. Your case number
B. Date filed
C. Filed in the Northern District of Texas, Ft. Worth division.
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8. After your FIRST Filing you will receive a Notice of Bankruptcy by mail from the court. It will tell you the date and time of your "Meeting of Creditors” (called a 341 Meeting) in Fort Worth. YOU MUST ATTEND THIS MEETING. Put it on your calendar.
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9. Next, you will receive a standard Notice of Deficiency by mail from the court. It will list the additional items we need to file for your SECOND filing. These are due within 14 days from the day you filed your FIRST filing. Set an appointment with Mr. Hixson to complete these documents. Also, provide anything missing from your worksheets. Additionally, now is the time that you will provide your Statement Of Intentions.
A. If someone files a bankruptcy while having secured property (a mortgage, car loan, store property, etc,) they will have to advise the secured lenders that they want to either: Surrender, Reaffirm, Retain & Pay, or Redeem (purple form) Learn about it here.
B. If you discover that there is an error or a creditor has not been included, contact Mr. Hixson immediately to get this corrected.
C. If you discover that there is property you own that has not been included, contact Mr. Hixson immediately to get this corrected.
D. Make sure you have submitted your last tax return and check stubs or payment record from your employer for the last two months.
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10. 341 MEETING. YOU MUST ATTEND THIS MEETING. No small children. In this meeting you will informally meet with the judge, answer a few questions, and your creditors are allowed to attend (they rarely attend and if they do, they will just ask some questions).
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The Fritz G. Lanham Federal Building is at 819 Taylor Street (at 10th and Taylor). Go to Trustees Office on the 7th Floor. When you get off the elevator, follow the signs to the Credit Union - you will see the Trustees office. Meet Mr. Hixson 15 minutes before the time of your meeting in the waiting area inside the Trustees Office. Macro Map Micro Map
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11. Bankruptcy Education course TWO ― is due within 30 days of your 341 meeting. You will need your bankruptcy case number to complete this educational requirement.
As soon as you complete the course, e-mail or fax the certificate to john@hixsonlawfirm.com or 817-665-9184. Several course choices are:
Dave Ramsey has an excellent Financial Management course which fulfills the requirement for the second course and corresponds with our Recovery Coaching Session. They offer the course by streaming video or DVD. Visit them at www.daveramsey.com/bankruptcy or contact them by phone at 800-480-5902.
GreenPath offers both courses via the Internet and telephone. Visit them at www.greenpathbk.com or contact them by phone at 866-860-4220. (When it asks for the Atty. Name, use "John Hixson". When it asks for a Atty. Code use "76015")
Institute for Financial Literacy offers both courses via the Internet and telephone. Visit them at www.financiallit.com or contact them by phone at 866-662-4932.
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12. After the 341 meeting you should not receive any calls or notices from your creditors. If you do receive anything, we need to make sure they were included in the filings. Note that you may be contact by a creditor to arrange a “voluntary return of property”.
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13. Sign reaffirmation agreements. Call and make an appointment to discuss and sign. These are for debts that you want to continue paying for: your car, home or other property with a lien. Learn the Pros and Cons of Reaffirmation Here.
Note that if you pay by automatic debit, after you file, you will need to resubmit that paperwork to your creditors - do this one month after the 341 meeting. Don't forget... your old way of automatically paying will not be active.
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14. Recovery Coaching Session. After you complete your second financial course, set up an appointment to meet with Mr. Hixson to plan your strategy for recovering from bankruptcy. Bring your monthly bills and budget. If you are a renter, ask us about TCHP. If you have a mortgage, ask us about lowering your payment.
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15. Pay balance owed to Mr. Hixson according to the terms you agreed to.
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16. Now you will receive your Discharge in the mail.
- You will no longer owe the debts.
- DO NOT pay discharged debts or they may be revived after Discharge.
- Please note that NOT ALL debts can be discharged in bankruptcy― taxes, child support, student loans, etc. Make sure you continue to pay those debts throughout and after the process.
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17. Permanently keep all your bankruptcy papers—together and in a safe place (including your discharge).
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18. Be sure you have a written budget for each month and follow it. As part of that budget, include savings. Avoid debt – it is a trap (read it again). Your goal should be to have NO DEBT― other than an affordable home loan.
I've never been poor...only broke.
Being poor is a frame of mind.
Being broke is only a temporary situation.
~ M. Todd
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