What to Expect During Bankruptcy

Not knowing what comes next is one of the biggest sources of stress for people considering bankruptcy. The process itself is straightforward when you have an experienced attorney guiding you, but understanding each phase in advance helps you feel prepared and in control. Below is a detailed look at what happens from the moment you pick up the phone to the day your debts are discharged.

Step 1: The Initial Consultation

Your bankruptcy journey begins with a one-on-one meeting with Bryan P. Keenan. During this free consultation, Bryan reviews your financial situation in detail. He will ask about your income, monthly expenses, types of debt, and any assets you own. The goal is to determine whether bankruptcy is the right solution and, if so, which chapter best fits your circumstances.

You should bring the following documents to this meeting:

• Pay stubs from the last six months
• Federal and state tax returns from the past two years
• A list of all debts, including creditor names and approximate balances
• Recent bank and investment account statements
• Any collection letters, lawsuit papers, or garnishment notices
• Mortgage statements and car loan documents (if applicable)

Do not worry if you cannot locate every document right away. Bryan's team can help you track down missing information. The consultation typically lasts 45 minutes to one hour, and there is no obligation to proceed.

Step 2: Credit Counseling Requirement

Federal law requires all bankruptcy filers to complete a credit counseling course from an approved provider before the petition can be filed. This course takes about 60 to 90 minutes and can be completed online or by phone. The cost is typically $15 to $50. Bryan's office will provide you with a list of approved providers and can often arrange a fee waiver if your income qualifies.

This requirement exists to ensure that filers have considered all their options. It is not designed to talk you out of filing. Most clients complete it within a day or two.

Step 3: Preparing and Filing the Petition

Once you have completed credit counseling, Bryan's team prepares your bankruptcy petition. This document includes detailed schedules listing your income, expenses, debts, assets, and recent financial transactions. Accuracy matters here. Bryan personally reviews every petition before it is filed to ensure nothing is overlooked.

The preparation phase usually takes one to three weeks, depending on how quickly all required documents are gathered. When everything is ready, the petition is filed electronically with the U.S. Bankruptcy Court for the Western District of Pennsylvania.

Step 4: The Automatic Stay Takes Effect

The moment your petition is filed, a federal order called the automatic stay goes into effect. This is one of the most powerful protections in bankruptcy law. The automatic stay immediately stops:

• All collection calls, letters, and emails
• Wage garnishments
• Bank account levies
• Foreclosure proceedings
• Vehicle repossession efforts
• Utility disconnections (temporarily)
• Most pending lawsuits against you

Creditors are notified by the court and must cease all collection activity. If a creditor violates the automatic stay, they can face sanctions and be required to pay your attorney fees.

Step 5: The 341 Meeting of Creditors

About 30 to 40 days after filing, you will attend the Meeting of Creditors, also known as the 341 meeting. Despite its name, creditors rarely appear. The meeting is conducted by the bankruptcy trustee assigned to your case, not a judge.

The trustee will ask you questions under oath about the information in your petition. Typical questions include confirming your identity, verifying your income, and asking whether all assets have been disclosed. Bryan will be sitting right next to you during this meeting and will have prepared you thoroughly beforehand.

The entire meeting usually lasts between 5 and 10 minutes. It is held in a meeting room at the federal building, not in a courtroom setting. Most clients describe it as far less intimidating than they expected.

Step 6: The Discharge

In a Chapter 7 case, the discharge order typically arrives about 60 days after the 341 meeting. This court order permanently eliminates your qualifying debts. Creditors can never again attempt to collect on discharged obligations.

For Chapter 13 cases, the discharge comes at the end of your repayment plan (3 to 5 years). During the plan period, you make structured monthly payments to the trustee, who distributes funds to your creditors. Upon successful completion, any remaining qualifying balances are discharged.

Before receiving your discharge, you must also complete a second educational course called the Financial Management Course (also known as the debtor education course). Like the pre-filing credit counseling, this can be done online and typically takes about two hours.

Timeline Summary

For a typical Chapter 7 case, the entire process from initial consultation to discharge takes approximately 4 to 5 months:

• Weeks 1-3: Consultation, document gathering, credit counseling, petition preparation
• Day of filing: Automatic stay takes effect immediately
• Day 30-40: 341 Meeting of Creditors
• Day 90-100: Discharge order entered

Chapter 13 timelines are longer because of the repayment plan, but the protection and structure begin on the day of filing.

You Are Not Alone in This Process

Bryan P. Keenan has guided thousands of Pittsburgh-area residents through every stage of bankruptcy. He knows that the unknowns are often scarier than the reality. If you have questions about any step described above, or if you want to find out whether bankruptcy is the right path for your situation, reach out for a free consultation.

For a broader introduction to bankruptcy law, visit our Bankruptcy 101 page. If you want to learn more about Bryan and his approach to client service, visit our attorneys page. And for quick answers to common questions, check out our Bankruptcy FAQs.