I am a California resident who wishes to apply for Ch. 7 BK, and there is a possibility that I might be hired for a teaching position in Arkansas this fall semester (i.e., beginning in August). I have already paid $250 to a paralegal agency which typed up paperwork for me to file pro per for Ch. 7 BK. A friend who filed for bankruptcy several years ago said that it takes 2-4 weeks from the time of filing for BK to get a court date, but another friend guessed that it could take longer these days given the likelihood that the BK courts are clogged with an increase in the number of people filing BK. I have had a low-income job in California, and if I get a job in Arkansas it is likely to pay more, but not so much more that BK won't be necessary. I assume that if I do not file for BK in California so that I might file instead in Arkansas, I will lose the $250 partial payment already made to the paralegal agency. However, a plane flight back to California might well cost about the same (if a court date were set after I had moved to Arkansas). I have received paperwork from Capital One indicating that it wishes to change the terms of my contract to one of arbitration unless I send the paperwork back promptly indicating refusal of this change of terms, and I take this to mean that Capital One is likely to initiate legal action against me in the near future if I do not take action myself by filing BK. If I file for BK in California, is it true that I might get a court date in 2-4 weeks? If so, is 2 weeks a reasonable likelihood? Should I file for BK immediately in California, even if this might mean a plane trip back for a court date? Or should I wait until I know definitely if I might get the job in Arkansas, and file for BK there? Are there any requirements in Arkansas that I live in the state for a certain period before filing for BK there? Would my moving to Arkansas invalidate the legitimacy of my filing for BK in California, provided that the date of my filing (even if not my court appearance) was still while I was a California resident?
I believe federal law states that you must reside in the state you are filing bk in, for 6months prior to filing.
George, I don't know re how much Arkansas spends on its public schools. I'm considering a position involving teaching undergraduates. I don't know what the salary might be at this time, but can only assume that it would be higher than my present temp work. And it would be helpful for me to have more college-level teaching experience when applying for future positions.
LKH, Damned close....the residency requirement is the better of 180 days...which means 91 days. If you plan to move to Arkansas then you would have to wait 91 days before you can file. I would not recommend this as the BK Reform Act is so close to being passed and I think it will definitely be passed after the November elections. Their is an effective date provision of 180 days but the president can change that and make it effective immediately. So my advice to you is to file in California. The 341A meeting of the creditors is usually 45 days from the date of filing...give or take a week. So in answer to your question it could take 6 weeks until your court date and of course you know attendance is a must or your bk will be dismissed. Of course I really think having a paralegal prepare your filing is an unwise move (and I'm a paralegal) because if there are any mistakes you're screwed...so file pro-se at your own risk. If there are major errors it might cost you more than a plane ticket back. Hope this helps, clc
Are you relatively certain that BK7 is your only way out? How much are the debts? I am sure you are aware that it will be on your credit report for 10 years. Rather a stiff penalty I think. I have seen younger friends unknowingly claim BK7 for debts under $5000. Sad, but they didn't know any better and saw no way out of what they thought was unsurmountable debt. Just wanted to make sure... First, depending upon what you want to discharge and the complexity involved, you likely will want to have at least a consultation with a lawyer. Are you aware that there are free or reduced cost legal services available to the pubic for such matters? Paralegals are great, but I have also seen people who get the shaft when the lawyer is not as involved as he/she should have been. Even if you move to Ark, the BK proceedings and paper work are almost the same. Just ask them for the final paperwork in electronic format where it can be easily edited. I am fairly sure that you will need to file in CA (need to ask lawyer ) and you will likely need more than a couple of weeks. People are currently in a rush to file before the new BK laws are signed, even though they won't be effective for 6 months (if they even pass the Senate). Don't count on a quick turn around. You can call the clerks office and ask them. They are normally quite helpful. Cap One sent this paperwork to all of their customers to the best of my knowledge. A lot of credit card companies are trying to get you to agree to arbitration. DO NOT DO IT. Disagree, and send the paperwork back in. Keep a signed copy. In my opinoin, CA has some of the best consumer protection laws around. I can only wish I was in Cali. The BK laws are the same, but I can tell you that all other credit card and creditor/debtor issues are to your advantage in CA. (just FYI) As far as returning for a court date, I am not sure if you would have to show up in person. It might be possible to have a lawyer appear for you. Ask the paralegal. It might be cheaper for you.
A lawyer can NOT appear in the place of the debtor. A debtor MUST appear at the 341a meeting of the creditors or else the bk WILL be dismissed. You must be a resident of the district (note I didn't say state as there are some states that have multiple districts) for 91 days before you can file for bk in that district. If you file in CA ( a 2 district state) you must be in CA for the 341a meeting of the creditors. There are no exceptions (except EXTREME hardship and take this literally...you are physically unable to appear...in that case the trustee, at his discretion, can ask you the questions telephonically...but this is very, very rare.) A paralegal ethically cannot give legal advice. If they do the local bar association pretty much runs them out of business. All a paralegal can do is assist you in filling out the forms. This has become such a serious problem that the new bk reform act provides for it....so buyer beware. I would pay for a consultation with an atty after the papers are filled out for at least an opinion as to their quality. Of course many attys don't want the responsibility if they are not handling the case...and you can't blame them as they do not want to expose themselves to a possible malpractice or negligence suit. Hope this helps, clc
I disagree. When I filed CH7 in 1993, my lawyer went to the meeting of the creditors. I did not have to attend. When I filed CH13 in 1998, I did have to attend. There is class on financial management, explaining requirements of CH13, etc that you need to know as a CH13 filer. This is why you have to attend. I would check with a lawyer. CH 7 is not expensive to hire a lawyer for because all he/she does is fill out the original paperwork and attend the 341 meeting. A CH13 means you have to have the lawyer retained for the duration, 2 - 5 years.
Things have changed in 10 years. Now, you must attend unless there is a disability issue. And, at the hearing you must present the trustee a picture ID.
I filed a pro se Chap 7 petition in June 1992 in the Southern District of New York. That August I headed off to grad school in Mass. I informed my trustee, and I flew back to attend my meeting of creditors. No big deal. There is also a mechanism, from what I understand, of having your case transferred to the District Ct. in your new state of residence. Ask about that. Good Luck! cariba
