Filing Process
Process for Filing Chapter 7 Bankruptcy
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Collect pay stubs, tax returns, bank statements, debt information, property details (rent or mortgage payments and amount owed), car payment information, and a list of monthly expenses. List out your monthly living expenses including food, clothing, child care, utilities, taxes, transportation, health insurance, medicine, etc.
Click the button at bottom of the page to download a printable document checklist.
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Within 180 days before filing, you must complete an approved credit counseling course. This usually takes 1-2 hours, can be done online, and costs around $10-50.
A list of approved providers is available here.
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You need to show you don't have enough income to pay your debts. In Maine, if your household income is below the state median (varies by family size), you automatically qualify. If it's higher, there's a calculation to determine eligibility.
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Your attorney will submit a petition and schedules to the U.S. Bankruptcy Court in Maine, which has locations in Portland and Bangor. There's a filing fee of $338, though you may qualify for a waiver or payment plan.
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Once filed, creditors must immediately stop collection calls, lawsuits, and garnishments.
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The court will appoint a case trustee whose role is to represent the interests of creditors, review your financial affairs, and collect and liquidate assets.
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About 30-40 days after filing, you'll attend a brief meeting called a 341 meeting where a trustee asks questions about your finances under oath. It's usually informal and lasts 10-15 minutes.
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After you file, you are required to take a second class on financial management. Once you complete the course, you will receive a debtor education certificate, which is required for discharge.
A list of approved providers is available here.
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About 60-90 days after the meeting with the trustee, most debts are eliminated.
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It will take some time to rebuild your credit, but you can start by paying your bills on time, keeping credit utilization low, and considering a credit-building loan. The most important thing is to avoid falling back into the same patterns that led to bankruptcy.
Visit Rebuilding Credit to learn more.