Timeline for Chapter 7 Bankruptcy

Filing for Chapter 7 bankruptcy can be difficult, both financially and emotionally.  On top of attorney’s fees and filing costs, you may have to deal with property loss and other concerns beyond your control. But you can make the choice to make your situation easier by making an effort to understand the process you will undergo as you file a Chapter 7 bankruptcy. Learning the timeline for consumers filing Chapter 7 ahead of time can be very helpful in preparing you for what possibly lies ahead.

1) Talking to a Lawyer (Before you file)

Before you begin the bankruptcy process, speaking with a bankruptcy lawyer is a wise course of action. A bankruptcy lawyer has the education and professional experience to properly advise you on making bankruptcy related decisions. Getting into bankruptcy without understanding the process properly can be overwhelming and even hurtful to your financial health.

2) Filing your Bankruptcy Petition (The first day)       

The first official step of bankruptcy is the bankruptcy petition. The bankruptcy petition is an application, of sorts, that is used to file a bankruptcy. The bankruptcy petition declares to the court your request for bankruptcy, beginning the long process. Before filing your bankruptcy petition, however, it is important that you make sure you fully meet the eligibility requirements, including the completion of a credit counseling course within six months before you file.

3) Automatic Stay (The first day)

Soon after filing your bankruptcy petition, an automatic stay will be issued by the court. An automatic stay secures you for the time being from creditors and collectors pursuing you for outstanding debts. As long as the bankruptcy case is pending, your automatic stay will remain active, meaning creditors cannot even contact you about paying your debts.

4) Creditors Meeting (Around a month after filing)

The creditor’s meeting, also called the 341 meeting, is an inquiry between you, your creditors, and your trustee. This official meeting allows the creditors and trustee to ask you questions about your debts, income, and intentions for filing a bankruptcy. For this meeting, bringing a lawyer to represent you and offer advice can be very helpful. Ultimately, the creditors meeting can be very influential in the result of your bankruptcy case.

5) Follow-Up Credit Counseling (Shortly before discharge)

In addition to the one taken before filing, the court requires you to take a credit counseling course before the bankruptcy process is finalized. Make sure to get with an approved credit counseling service as soon as you can to ensure a smooth discharge.

Bankruptcy Discharge (90-120 days after filing)

The discharge hearing is the finalization of the bankruptcy process. When your bankruptcy has been completed, you will attend a hearing at the bankruptcy court to receive discharge papers. The court will issue an official order making your discharge legal, at which point the debts covered by the bankruptcy are no longer yours. Once this takes place, your bankruptcy has come to an end.