Bankruptcy helps people who can no longer pay their debts get a fresh start. Once you file bankruptcy in Yonkers NY, it sets off a chain reaction of events. Some of these events are designed to protect you, while others are designed to protect your creditors. Knowing how the process unfolds will help you prepare for the different stages in the bankruptcy process.


Here are ten things that happen after filing Chapter 7 bankruptcy.

  1. A bankruptcy trustee is assigned.

A bankruptcy trustee is responsible for overseeing your filing. They can evaluate and make recommendations on your behalf. Trustees also have the responsibility of making sure that your bankruptcy case is not fraudulent. However, only the bankruptcy judge has the final say on how to distribute assets.

  1. An automatic stay goes into effect.

When you file for Chapter 7 bankruptcy in Yonkers, an automatic stay goes into effect. This stay stops creditors from taking further action to collect against you. Creditors and debtors are not allowed to contact you by phone or mail. They also cannot start or continue legal proceedings against you.

  1. A creditor meeting is scheduled.

The 341 meeting of creditors is a required meeting between you and the bankruptcy trustee. It’s an informal hearing held in a meeting room, not a courtroom. The purpose of this meeting is to verify your identity and gather information about your bankruptcy case. While your creditors may attend, this usually doesn’t happen.

  1. Attend financial management classes.

Before filing for bankruptcy, you will need to take a credit counseling course. After you file for bankruptcy, you will need to take another course that will help you manage your finances after your debts are discharged. The bankruptcy judge will only give you a discharge once you have completed these two courses.

  1. Sell some property – at discretion of your trustee.

In a Chapter 7 bankruptcy, the trustee may liquidate some of your non-exempt assets and distribute them to creditors. You will get to keep many of your assets, such as your household items and your car. Some of the things your trustee may sell are jewelry and collectibles. A good Chapter 7 bankruptcy attorney will guide you through this process.

  1. Get your debts discharged.

At the end of your bankruptcy case, you will finally get a discharge order from the bankruptcy court. This order stops creditors from taking any action against you in the future. Most debts are discharged through Chapter 7 bankruptcy, with a few exceptions, such as taxes, child support and domestic obligations.

  1. Save and file all paperwork.

Be sure to save the paperwork from your bankruptcy case. You may be asked for copies in the future, especially when you apply for a mortgage or loan. It’s helpful to have this paperwork on hand in case there are ever any questions about what debts were discharged.

  1. Create a budget and save money.

After going through bankruptcy, the last thing you want to do is fall back into old habits. Bankruptcy in Yonkers is designed to give you a fresh start, so use this time to establish good financial habits. This can include opening a savings account for emergency situations, creating a budget based on your income and paying attention to your day-to-day spending.

  1. Re-establish good credit.

Even though your credit will take a hit from your bankruptcy filing, it won’t say this low forever. In fact, you can start working on your credit as soon as your case is complete. The best ways to rebuild credit are by paying bills on time and opening a secured credit card. These cards are backed by your savings account.

  1. Regularly monitor your credit reports.

It’s normal to feel intimidated by your credit report, but rest assured that it will improve with time. Make it a habit to monitor your credit report to ensure that all information is accurate and up to date. Incorrect information can cause your credit score to be lower than it should be. If you see an error on your credit report, report it to the credit bureaus.

The Law Office of William Walder is here to guide you through the bankruptcy process. We will be there every step of the way to ensure the process moves smoothly and that you get the fresh start you’re looking for. Contact our bankruptcy attorneys in Yonkers NY to schedule a free consultation.