How Bankruptcy Works

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We at Lepant & Lentz, pride ourselves on great service and a friendly, non-judgmental attitude. It is our commitment to make sure that you fully understand the whole concept of bankruptcy. Learn more about it here on this page.
Foreclosure happens to a lot of homeowners. People sometimes find themselves in financial difficulty and they just cannot make their home loan payments for a period of time. A lot of people file for protection under the Bankruptcy Code primarily to save their house.

Once you have defaulted on your home loan, your lender will file a deficiency notice and begin the foreclosure process. You can stop this process by filing for bankruptcy and by providing for the arrearage through your bankruptcy. Bankruptcy can save your home and bring your loan current. Until a trustee sale has occurred, you still have time to save your home.


It is tough to survive or feed your family when someone takes up to 25% of your hard-earned money away from you. Many people who have missed credit card payments, medical bill payments, or found themselves owing a landlord after being evicted or moving out are sued and judgments are rendered against them.

After a judgment is filed against you, the next step for the creditor is to collect the money by garnishing your wages and/or bank account(s). Bankruptcy not only stops this process dead in its tracks, but it could also allow you to get some of your money back.

There is a provision in the Bankruptcy Code that allows you to recover involuntary transfers of your property (including money) to your creditor so long as said transfer exceeds $600.00 in value to a single creditor.  The day you file bankruptcy, your attorney at Lepant & Lentz, PC LLO will demand that money back from your creditor.


The day you file bankruptcy, most all civil lawsuits against you must stop. Your attorney will file a notice in each case you are involved and the case will be dismissed.

Meeting of Creditors

Everyone who files bankruptcy, whether it be Chapter 7, 11, 12, or 13, must make an appearance at a “Meeting of Creditors” or what is also called a “341 Meeting.” This is where the bankruptcy trustee, who is appointed to your case to oversee it, will ask you questions about the paperwork you filed and questions about your situation.

A judge is not present at the meeting of creditors. You will be under oath, but your attorney will be there to help you and guide you through the process.

Many people are intimidated by the meeting of creditors, but the meeting itself is quite simple. It is not an inquisition; it is a chance for the trustee to make sure you are familiar with the information contained in your bankruptcy schedules and to clear up any questions he/she may have. Creditors typically only ask about any applicable collateral on secured loans, if they show up at all.

Most meetings of creditors are conducted quickly and in a conference room with several other people who have filed bankruptcy. You do not have to feel embarrassed or be nervous about the meeting because you will be with your attorney and other people who have filed bankruptcy.

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