What is a Common Chapter 7 Bankruptcy Timeline?

If you are thinking about filing for Chapter 7 bankruptcy, you may know that this type of bankruptcy is a liquidation bankruptcy that will result in all non-exempt assets being liquidated in order for you to get a discharge of all eligible remaining debts. Many consumers want to file for Chapter 7 bankruptcy because it is much faster than a Chapter 13 bankruptcy process, which stretches out over a number of years. Yet when consumers are trying to understand the timeline for a common Chapter 7 bankruptcy case, the amount of time between filing a bankruptcy petition to a discharge can be somewhat unclear.

In general, a Chapter 7 bankruptcy petitioner will typically be eligible to receive a discharge anywhere from 80 to 100 days after filing the bankruptcy petition. Yet there are many steps that have to occur prior to a discharge, and we will go through the timeline for those steps below.

Within 180 Days Before You File for Bankruptcy: Complete Your Credit Counseling Course
Within 180 days prior to the date you file your petition for Chapter 7 bankruptcy, you will need to complete a credit counseling course.

File Your Bankruptcy Petition
Assuming you completed your credit counseling course within 180 days, the next step is to file your Chapter 7 bankruptcy petition

File Your Certificate of Credit Counseling, Lists, Schedules, and Statements
If you did not file these documents with your bankruptcy petition, they should be filed within two weeks from the date of filing the bankruptcy petition.

Provide Your Tax Returns to the Bankruptcy Trustee
You will need to give the bankruptcy trustee copies of your tax returns. This will need to happen seven days prior to the 341 Meeting of Creditors.

File Your Statement of Intention
You will need to file your Statement of Intention form 30 days after you file your bankruptcy petition or before the first date that is set for the 341 Meeting of Creditors—whichever date comes first.

Attend the 341 Meeting of Creditors
The 341 Meeting of Creditors will take place anywhere from 20 to 40 days after you file your bankruptcy petition.

Complete Your Financial Management Training Course
Every person who files for Chapter 7 bankruptcy will need to complete two education courses: the credit counseling course before filing for bankruptcy, and the financial management training course. The latter needs to be completed 60 days after the first date set for the 341 Meeting of Creditors. This typically occurs anywhere from 80 to 100 days after you initially file for bankruptcy.

Have Your Debts Discharged
Once you have completed all requirements, you can be eligible to have your debts discharged. For most debtors, this occurs between 80 and 100 days after you initially file for bankruptcy, or just about three months.

Contact an Oak Park Bankruptcy Lawyer
If you need assistance filing for Chapter 7 bankruptcy, one of the dedicated Oak Park consumer bankruptcy lawyers at our firm can help. Contact the Emerson Law Firm to learn more about the services we provide to consumers in and around Chicago, Illinois.


See Related Blog Posts:

Filing for Consumer Bankruptcy in the Time of Coronavirus

Personal Bankruptcy for the Self-Employed: Five Things to Know

Comments

Post a Comment

Popular posts from this blog

Payday Lending and Predatory Lenders in Illinois

If you are in substantial debt in the Chicago area and are living in a paycheck-to-paycheck cycle, you may have taken out a payday loan to make ends meet. While payday lending is illegal in a number of states due to the predatory nature of these loans, it remains legal in Illinois. As a result, many debtors in the state have used payday lenders, and far too many of those borrowers cannot repay what they owe. According to a recent article from Progress Illinois , consumers have filed complaints about payday lenders in the state, illuminating a need for federal rules that address harmful lending practices . Predatory Payday Lenders and Protections for Consumers Due to the perceived predatory nature of payday loans, twelve states in the country have banned these lenders from operating completely, according to a fact sheet from loans.org . The states that currently have laws prohibiting payday lenders from operating include Arkansas, Arizona, Connecticut, Georgia, Mary...
Read more

Phantom Debt Collection Scams on the Rise in Illinois

Have you been contacted by a person claiming to be a debt collector who is seeking to recover a debt you allegedly owe? If so, you are not alone. According to a recent report from CBS Chicago , such parties claiming to be debt collectors are on the rise, and they are scamming Chicago-area residents. These alleged debt collectors are part of schemes known as “phantom debt collection scams,” since they involve the attempt to collect on a debt that the consumer does not actually owe. How can you avoid becoming a victim in a debt-collection scam ? What should you do if you have been targeted by a fake debt collector? How Do Phantom Debt Collection Scams Work? Now, you might be thinking to yourself: I would never agree to make payment on a debt that I did not owe. But the scam is not always that simple. Parties at the center of debt-collection scams often target consumers who do actually owe debts (to someone or to some entity), and they prey on the fact that these c...
Read more

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti...
Read more