Chapter 7 Timeline

To begin a Chapter 7 case, the debtor must gather financial information (such as proof of income, bank statements, tax returns, etc.) complete a questionnaire, take a credit counseling course (over the telephone or internet) and pay the required fees. We then prepare the bankruptcy pleadings and send a draft to the client for review and approval. The length of this process is mostly dependent upon how long it takes the client to provide to me the completed questionnaire, required documentation, and credit counseling certificate; but once I have the materials I need the pleadings can be finalized and filed in one day.

The moment the bankruptcy case is filed an automatic order issues from the bankruptcy court that stops creditors from taking action to collect on most types of debts arising prior to the filing of the bankruptcy case. A meeting of creditors ("MOC") is scheduled between 20-40 days after the filing date of the bankruptcy case. But "the meeting of the creditors" isn't a very good name for this event because creditors rarely make an appearance, and for consumers it's primarily an opportunity for the trustee (the person appointed by the court to administer the case) to make sure the consumer understands his or her rights and responsibilities in the bankruptcy case.

The second credit counseling certificate must be filed with the court within 60 days of the MOC. If a creditor or trustee wishes to object to the discharge, they must file a written objection within 60 days after the MOC or lose the right to do so.  In a typical case (no objection to discharge having been filed), the debtor receives a discharge of most types of debt within 120 days after the date of filing the petition.