How Long Does Chapter 7 Take?
Typically, chapter 7 bankruptcy cases last between three and four months from the date the case is filed. The preparation for a chapter 7 bankruptcy case can be anywhere between one day and many months depending on a number of factors, including attorneys fees, document readiness etc. This post will deal with the chapter 7 bankruptcy timeline after filing a case. For questions about what it takes to prepare a chapter 7 bankruptcy case, consult a bankruptcy attorney.
Rough Chapter 7 Bankruptcy Case Timeline:
Day 1: Case Filed
Chapter 7 bankruptcy cases are filed electronically by a bankruptcy attorney, however, before this occurs, you will need to visit with your attorney to sign your petition and schedules after a thorough review. Soon after filing, your case will be assigned to a trustee and you will learn the date of your meeting of creditors (also called the “341 meeting”).
Day 30-40: Meeting of Creditors
Approximately thirty to forty days after the case has been filed, the debtor will be required to attend a creditors meeting. The creditors meeting is mandatory, failure to attend will result in a dismissal of the case. To learn more about the meeting of creditors see the following article:
What should I expect at the 341 meeting?
Day 60-70: Debtor Receives Discharge
Approximately sixty to seventy says after the meeting of creditors, the debtor will receive an order of the bankruptcy court, signed by the judge, which officially discharges his or her debts. For most debtors, this is the day they have been waiting for; the bankruptcy discharge wipes the slate clean giving them the chance at a fresh start unburdened by past debts.
Day 90-100: Chapter 7 Case Closed
Approximately three months after the chapter 7 bankruptcy case has been filed, it will be officially closed by the trustee.
Keep in mind that the scenarios described above deal with a typical chapter 7 bankruptcy case, in some cases, chapter 7 bankruptcy can take longer than the rough timeline outlined in this article.
For Chapter 7, does the Trustee have the right to collect last year Tax Refund when it used to pay all the legitimate expenses such as pay mortgage, property tax, utilities, other credit cards that were not include in the creditors list to be discharge, etc BEFORE FILE for discharge Bankruptcy Chapter 7 that filed in June the following year??? Please point me which secction of the law would tell me more detail. Thank you.
And if the Trustee did wrong decision, what can I do? Who do I need to talk to?
Please include this message on the response. Thanks again.
Diana
As a general rule, if you’ve already spent your tax return, the trustee can’t come after it because its already gone. You’ll want to schedule a meeting with a local lawyer who knows your state exemption laws.
Great Fourm! but help- My bank W.F. will not accept my mortgage payment. I was granted a discharge from a chapter 7 filing. Before 30 days past from the discharge date, I attempted to make my normal payment amount..the bank refused my funds- and pretend not to know me-they are stating they are proceeding forward with a forclosure. When would my very first mortgage payment be due from the date of my discharge? Am I too early or too late with my payment? I am trying to pay without making any re-affirmation, are they allowed to refuse my funds? Please reply & thank you in advance! AL.
I have state and federal income taxes (personal liability) in the state of Montana. Will these be discharged?
Kate take a look at this article: http://nbf.wpengine.com/chapter-7-bankruptcy/discharging-state-and-federal-tax-debt-in-bankruptcy/
Al, take a look at this post by NBF member Russ Demott: http://www.sc-bankruptcy-blog.com/i-filed-bankruptcy-and-they-wont-take-my-payments/2011/10
If good will (client list and relations) is the most valuable asset of a Chapter 7, how is that typically handled by the trustee? Would the business be auctioned, listed for sale with a realtor, or just liquidated for physical assets of the business?
Most trustees will get an appraisal and go from there. As a practical matter, valuing good will, especially if it’s tied to an individual, may be difficult and potentially hinder a sale.