Clients often ask us the time frame from start to finish for a Chapter 7 bankruptcy. Here is a brief synopsis of the timeline you can expect after filing for Chapter 7.
Day One of the Chapter 7 Bankruptcy
Your Chapter 7 bankruptcy officially begins when your bankruptcy attorney files a petition with the Bankruptcy Court. This filing also begins the automatic stay which prohibits your creditors from any further collection action against you.
15 Days After Filing
The Bankruptcy Court will send official notice of your bankruptcy to you and all of the creditors listed on your petition. This notice will inform you of the date and time set by the Bankruptcy Court for your 341 meeting of the creditors. It will also inform your creditors of the deadline to object to your case if they choose to do so.
30 Days After Filing
Between 30-45 days after filing, you will have your 341 meeting of the creditors. You and your attorney are required to attend and testify under oath the accuracy of your petition in front of your assigned trustee.
Also within this time frame, your attorney will file your Statement of Intention. This indicates if you are surrendering or reaffirming any debt that is secured by collateral, such as your car or house.
45 Days After Filing
The Statement of Available Chapters, which is a certificate from your attorney that you received an explanation of the various chapters of bankruptcy that are available to you under the bankruptcy code must be filed.
60 Days After The Meeting of Your Creditors
Within 60 days of your 341 meeting, in order to receive a Chapter 7 Discharge, you must complete your post-petition financial management course. This course focuses on managing your personal finances after bankruptcy.
In addition, your creditors have 60 days after your 341 meeting to file an objection to any debt claimed in your Chapter 7.
Also within 60 days, the US Trustee or the Bankruptcy Court may decide to dismiss your case due to “substantial abuse.” This is generally defined by most bankruptcy judges to mean that you have the sufficient disposable income to pay a portion of your debt back over a 36-60 month period.
Your Chapter 7 discharge will be entered by the Bankruptcy Court as soon as the 60-day time period for your creditors to object to discharge or dismiss your case expires. You will usually receive your discharge papers on the bankruptcy petition 75-90 days after your 341 meeting.
If you have any questions about Chapter 7 or any other type of bankruptcy, please to set up an appointment.