How Long is the Process for a Chapter 7 Bankruptcy?
The short answer is between 4 to 6 months. Seem a bit long? I’m pretty sure it took you longer than that to even decide whether or not you were going to file for a Chapter 7 Bankruptcy.
The reason the process is long is because your petition will be full of your financial information. It’ll take you and your attorney a while to carefully organize documents and properly enter all the necessary information into your petition. The petition is a compilation of schedules that will tell a story about you and your financial situation starting with who you are, and where you live and work. Then, it goes into any property you may have and how much it’s worth. After that, a list of your debts will go in there. Getting this right will prevent the need to add creditors later or make adjustments that could cause potential complications down the road.
Another reason it can take a while is because you have to complete a credit counseling course. It’s short and can be done in about an hour, but we have busy lives and sometimes it takes time to get around to it.
In addition, providing notice to everyone who this bankruptcy affects, such as the creditors, is required. They are alerted to the 341 Hearing, also called a Meeting of Creditors, that they’re entitled to attend if they have an objection or proof of claim. Most times they do not come as most Chapter 7 bankruptcies are “no asset” cases, which means there is either little or nothing after exemptions that the trustee can seize to give a creditor.
Sometimes we can make the process faster with an emergency filing if you’re being sued or undergoing foreclosure. Whatever your need is, we’ll try to make the process as smooth and easy for you as possible within a workable time frame. Give us a call for a consultation! We’re here to help you during these tough times.