Bankruptcy terms, translated.

Intake appointment

That is the first meeting you will have with the attorney. At that time we go over your bankruptcy options and let you know how bankruptcy will help you. It's free, and here is what to bring.

Bankruptcy petition

The paperwork you sign in the office outlining your assets, debts, income, expenses and so on. It's signed under penalty of perjury, which is why we're so picky about getting it right.

Signing appointment

The appointment where you come in to review your bankruptcy petition and sign saying it is true and correct. If you have done your credit counseling and paid your filing fee, your petition should be filed within a day or two.

Filing fee

The amount we must pay the clerk of court to file your petition. Current amounts, and what everything else costs, are on the cost page.

Date of filing (DOF)

The date your bankruptcy petition is filed with the court. A lot of clocks start ticking on this date, which is why we're careful about picking it.

Automatic stay

When you file your case, your creditors are prohibited from picking up their collateral or attempting to collect a debt from you. The automatic stay is what stops these actions. Any creditor garnishing you must stop. Creditors set up to pull payments from your bank account have to stop that deduction. Creditors have to stop calling you.

Two things to know. Your mortgage company may stop sending monthly statements; if they do, let us know and we'll write and request they start back. And if you don't comply with your Chapter 13 plan, a creditor can ask the court to lift the stay. If any creditor violates the stay, tell us, and we'll send them another notice of bankruptcy. Some of my clients' stay-violation fights have ended up in the law books.

Notice of bankruptcy

About ten days after your case is filed you'll receive a notice of bankruptcy. When you get yours, your creditors are getting one too, so it may take a couple of weeks for them to update your account. The notice has your case number and the date and time of your two hearings.

Meeting of creditors (the 341 meeting)

This hearing is about thirty days after your case is filed. Bring your Social Security card and driver's license, and your most recent federal and state tax returns if we don't have them yet. Either John, Angie or Kelly will be at that hearing with you.

You'll watch a short video (Augusta and Dublin), then the trustee's attorney calls cases up one at a time, verifies your identity, swears you in, and asks any questions they have about your petition. If anything changes between filing and this hearing, like income or expenses, call and let us know beforehand. Your hearing should take less than ten minutes. In Statesboro it will only take about three.

Confirmation

Confirmation is when the judge signs off on the Chapter 13 plan we proposed. After that point your creditors can't object to what the plan says, like the amount they'll be paid or the interest rate. Your confirmation hearing is usually about sixty days after your date of filing.

Objection to confirmation

If you get an objection from one of your creditors or the trustee, do not be concerned. If there is a problem, we will let you know. Typically we anticipate most objections we get. If it was triggered by missing documents, like a tax return or Social Security card, just get us the missing documents. Most creditor objections are filed by the lien holder on your car wanting a different interest rate, and we see those coming. More on what creditors can and can't do is over here.

Motion to allow late claim (MTALC)

If a secured creditor doesn't file a claim to be paid by the trustee, I will file one for them. If your unsecured creditors don't file a claim, it typically doesn't matter. But if the lien holder on your car or your mortgage company doesn't file, we want to file for them so they get paid and your plan does what it's supposed to do.

Motion to dismiss (MTD)

If you get behind on your bankruptcy payment, the delinquency triggers this, usually at two or more payments behind. If you can't make your payments, schedule an appointment to look at your options, which may include surrendering collateral or other adjustments. Your Chapter 13 payment is based on income and debt, and there's usually something we can do. If you get this motion, call the office and tell us whether you'd like us to request a hearing.

Motion to increase payments (MIP)

Filed by the trustee when claims come in higher than expected, often tax claims, delinquent child support, or mortgage arrears. If the requested increase is large, we need to meet and figure out what caused it.

Motion to incur debt

If you need to borrow money during your case, we have to get the court's permission. If you want to borrow money to go on a cruise, that probably won't get approved. If your car dies and you need another one to get to work, we can usually get that approved, as long as you're current on your bankruptcy payments.

Motion for relief from stay (MRS)

Usually filed by a creditor you're paying directly, like your mortgage company, asking the court's permission to foreclose or pick up collateral. If it's about collateral we proposed to surrender, you won't even need to come to court.

If it's a creditor you've been paying and you disagree with the amount they claim is behind, schedule an appointment and bring proof of payment from the beginning of your case, not just the months they say you missed. Here's the secret: creditors typically don't want the collateral back, they want to know how the payments get caught up, and we can often put the missed payments into your case or spread them over six months. Don't wait until you get a motion. If you fall behind on the mortgage, come see us first. And keep full-coverage insurance on anything you owe money on, or the court can let the creditor take it back.

Motion to extend automatic stay

If you were in a bankruptcy case that was dismissed within a year of refiling, we must file this motion so your protection doesn't expire after thirty days. The court sends your creditors a copy explaining why we think your new case will succeed and sets a hearing. If no creditor objects by the deadline, odds are you won't have to attend. Typically we know ahead of time if refiling will be a problem.

Discharge

When you complete all your bankruptcy payments, you receive a discharge. That is a good thing. At that point you are done with your case! The trustee still has to close it out, which takes about two months while they audit the case and make sure every check to your creditors has cleared.

Dismissal

If you don't make your bankruptcy payments, your case is subject to dismissal. A case can also be dismissed for failing to file tax returns or pay child support. When your case is dismissed, your creditors are free to pursue their debts again. If you want to talk about refiling, make an appointment; there are timing rules, and the sooner we talk, the more options you have.