Chapter 7 Frequently Asked Questions

Do I owe a filing fee payment?

Probably. Some Debtors with very low income may qualify to have their filing fee waived. Otherwise, most Chapter 7 Debtor will owe a filing fee payment. The Chapter 7 filing fee is $338 but can be paid AFTER you get your case number in 4 monthly payments of $84.50.  If you aren't sure whether you owe a filing fee, call the office.

When is my Chapter 7 filing fee due?

You need to pay at least one payment of $84.50 every 30 days until a total of 4 payments have been made.

Can I pay my Chapter 7 filing fee in FULL before the due date?

Yes. You can pay your filing fee off early with no penalty.

How do I pay my Chapter 7 filing fee?

The court requires that you send your filing fee payment to our office so that we can pay it online via the court’s website. You MUST mail us a money order to 90 Friendship Rd., Oxford, AL 36203. Your case number MUST be on your payment. It can take up to 5 business days before your payment is processed by our office. Do not call us to check on your payment before 5 business days have passed since you mailed it.

What if I get a "Notice to Show Cause for Failure to Pay Filing Fee?"

It means you did not get your filing fee payment to us in enough time for us to pay it before your payment is late. If you mail your payment to us at least one week prior to the hearing, the hearing should be canceled. Call our office to confirm. If you have not mailed your filing fee within one week of the hearing, call our office for instruction.

What is a 341 Meeting of Creditors?

The 341 Meeting of Creditors is a hearing where the Chapter 7 trustee and your creditors get an opportunity to ask you about your case. Every Chapter 7 Debtor must attend this hearing. Most of the time, creditors do not attend. Your attorney will be present. Typically, the hearing is complete within one hour.

When is my 341 Meeting of Creditors?

The 341 Meeting of Creditors is held approximately 30 days after you get a case number. We will email you the date, time and call in instructions shortly after you get a case number. 

What if I need to reschedule my 341 Meeting of Creditors?

Call our office to discuss the options.

What happens after the 341 hearing?

There is a waiting period after the 341 hearing. A Chapter 7 case takes about 3-4 months to get discharged. Once you attend your 341 meeting, you will still have approximately 60-90 days before you are eligible for a discharge. During this time you will want to make sure you have completed your post-filing financial management course and paid your filing fee in full. We will call you if we need anything else from you.

What is a reaffirmation agreement?

A reaffirmation agreement is an agreement between you and a creditor on collateral you want to keep and continue to pay on.  This agreement allows the debt to survive the bankruptcy discharge, which means it will not be wiped away. Most Debtors choose to reaffirm things like their homes and cars. Not all creditors send reaffirmation agreements and that is okay. Keep payments current on anything you plan to keep. An attorney will call you after your 341 hearing to review any reaffirmation agreements we get in your case.

How will bankruptcy affect my credit score?

Bankruptcy has varying effects on credit scores, depending on the individual and his or her credit history. Some credit scores may improve while others will be lowered by a bankruptcy filing. We can't estimate how your credit score will be affected by your bankruptcy score.

How will bankruptcy affect the credit scores of my co-signers?

The credit scores of your co-signers may be affected by your bankruptcy case. This will vary depending on individual factors. We cannot estimate how your credit score or the credit score of your co-signers will be affected by your bankruptcy filing.

How long will my bankruptcy show up on my credit report after I file?

Bankruptcy will typically show up on your credit report for 10 years after your discharge.

Something is showing on my credit report that should not be. What should I do?

We have NO relationship with credit bureaus. Your credit report will NOT be fully updated until 3-6 months after your discharge. If something is showing up on your credit report that you think should not be there, contact the credit bureau directly. Please do not contact our office about this.

What is the requirement to complete a financial management course?

The bankruptcy law requires each Debtor complete a course on financial management. Our office will email you instructions on how to complete this course shortly after you get your case number.

I have a bankruptcy case number. Why is my credit report still not cleared up?

Credit reports will NOT be fully updated until 3-6 months AFTER your bankruptcy is over. If you see something on your credit report that looks wrong, please contact the credit bureau to dispute it. Our office has no relationship with credit bureaus and cannot address credit report errors.

When will I receive a copy of my bankruptcy paperwork?

We will email you a copy of your paperwork shortly after you get a case number. 

What do I do if one of my creditors calls?

If any creditor calls, give them your bankruptcy case number.

What should I do if my phone number changes or if I move?

Keep the office of Cobb Law Firm informed of good phone number(s) and address(es).

What should I do about liens against me?

It is your responsibility to get us copies of liens recorded against you in the Probate Office.

Can I file my tax returns as normal?

Yes. You will file your tax returns as normal. However, if you are entitled to a tax refund, you may not be able to keep it. If you expect a tax refund during your Chapter 7 case, call our office for instruction.