What Happens When in a Chapter 7 Case

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Here's a timeline of the major events in a typical Chapter 7 case filed by an individual or couple. 

First Things First -- Schedule an appointment with an attorney: Although you can file a bankruptcy case without an attorney, the process is fraught with pitfalls. There are many pitfalls. If you encounter one, you could lose your discharge or lose your property. Most consumer bankruptcy attorneys will provide an initial consultation for free.

A good place to look for an attorney is the listing on the site maintained by the National Association of Consumer Bankruptcy Attorneys.

The attorney will probably want you to bring some information about your debts, your expenses and your income.

Meet with your attorney.  The attorney will explain the process in detail and tell you what other documents and what information you need to gather.  If there is a question about whether you qualify for Chapter 7, the attorney will calculate the "means test" with information about your income and expenses.  

Preparation to file. To file an individual Chapter 7 case, you will need to file a packet of documents. Your attorney may give you worksheets to fill out or she may interview you. Either way, you will need to provide info on your income, debts, expenses, and recent financial transactions. She may ask you to provide copies of your bank statements, pay stubs, credit card bills, loan documents, vehicle titles, utility statements or other documents.

For more information on the documents filed in a bankruptcy case, refer to the category Bankruptcy Documents or Basics of the Bankruptcy Schedules.

The attorney will prepare the documents to be filed -- generally called the schedules. When the schedules have been prepared, your attorney should review them with you in detail. They must be complete and accurate because you will be signing them under penalty of perjury. You can learn about what penalty of perjury means here: Perjury in a Bankruptcy Case    

Take a credit counseling course. Before you can file a bankruptcy case, you must take an approved credit counseling course. If you have a computer, you can take one online in about an hour. Other options are available, also. Read more about this requirement at Pre-Bankruptcy Credit Counseling Requirement.

The petition and schedules are filed. The day on which the petition and schedules are filed is called the filing date or the petition date. In most bankruptcy courts, cases are numbered chronologically starting with 14-00001. The "14" refers to the year in which the case is filed. 

After the case is filed, your attorney, the trustee, the judge and the creditors will often refer to events as happening pre-petition (before) or post-petition (after). For instance, "He incurred the credit card debt 90 days pre-petition." "She received the work bonus two months post-petition."

File Statement of Intention: The Statement of Intention indicates what you intend to do about any property that secures an obligation, like your car payment or house payment. This will usually be filed when the case is filed, but if not, it must be filed no later than thirty (30) days after the case is filed. See What is a Reaffirmation Agreement?

Meeting of creditors: Also known as the 341 Meeting, the Meeting of Creditors is usually held about a month after the case is filed. Normally, the Meeting of Creditors only takes about ten to fifteen minutes. If the trustee needs additional information, he may continue the meeting for another date.

Exemption deadline: The Trustee has thirty days after the conclusion of the Meeting of Creditor to object to your claim of exemptions.

Personal Financial Management Course deadline: After you file bankruptcy, you must take a personal financial management course. This is different from the credit counseling course that you must take before you file your case. You have until 45 days after the Meeting of Creditors to file the certificate that you completed the financial management course. Read more about the Financial Management Course.

Perform under Statement of Intention: The deadline for you to reaffirm or surrender the collateral under the Statement of Intention is 45 days after the Meeting of Creditors, 

Dischargeability deadline: Creditors have until 60 days after the Meeting of Creditors in which to file a complaint objecting to your discharge or to the dischargeability of any particular debt.

Discharge is issued: In most courts, the Discharge of Debtor will be issued shortly after the Dischargeability deadline, if no challenge was filed to the discharge. Even if a creditor files a challenge to a particular debt, the court will usually issue the discharge anyway, which will effective as to all other dischargeable debts. 

Floating deadlines: different courts have different rules that contain deadlines for filing certain documents, like income tax returns, pay stubs, proof of insurance. Your attorney or the website for your court can provide additional information on other deadlines and documents specific to your jurisdiction.
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