Chapter 7 Bankruptcy Timeline
How Chapter 7 Works for You
In most situations, a Chapter 7 bankruptcy filing is a comparatively quick process. It will likely only take a few months for you to complete the Chapter 7 bankruptcy process and possibly receive a Chapter 7 debt discharge.
Below, we’ve detailed some important information to be aware of during your Chapter 7 case. In areas of business, deadlines are important—bankruptcy is no exception to that fact. If you have decided to file bankruptcy, a bankruptcy attorney may be able to help you sort through the deadlines and ensure a speedy path to Chapter 7 debt discharge.
At Chapter7.Me, we can connect you with a local bankruptcy attorney who can examine the Chapter 7 timeline with you in more detail. All you have to do is fill out our free bankruptcy evaluation form or call 1 (888) 632-0501, and we’ll do the rest to get you connected with a bankruptcy attorney near you from our nationwide network of sponsoring bankruptcy lawyers.
Noteworthy Chapter 7 Bankruptcy Dates to Keep on Your Calendar
6 Years Prior to Your Chapter 7 Bankruptcy
You aren’t eligible to file Chapter 7 bankruptcy until eight years after you’ve filed a prior Chapter 7 bankruptcy that has resulted in a debt discharge.
If you’ve received a Chapter 13 bankruptcy discharge or a Chapter 12 discharge in a case within the last six years, you will likely be eligible for a Chapter 7 debt discharge if you paid at least 70 percent of your allowed unsecured claims and your plan was proposed in good faith.
1 Year Prior to Your Chapter 7 Bankruptcy
If you’ve attempted to defraud your creditors by hiding or destroying your property within 12 months before your Chapter 7 bankruptcy filing, you may be denied the opportunity to file Chapter 7 bankruptcy. Defrauding your creditors is a serious offense. If it’s determined that you attempted to defraud your creditors, the bankruptcy court may be allowed to recover the property you tried to hide or transfer.
If you’ve had a prior bankruptcy case dismissed within one year of the time you filed Chapter 7 bankruptcy, the automatic stay entered in the case will be terminated within 30 days unless you can prove to the bankruptcy court that the Chapter 7 bankruptcy case was filed in good faith.
If you pay back one of your creditors who happen to be a relative or close business associate within one year before your bankruptcy filing, the payment may be considered illegal and the court could recover all the payments to be distributed to your other creditors.
180 Days Prior to Your Chapter 7 Bankruptcy
According to federal law, you must receive a credit counseling session from an approved credit counseling agency within 180 days of your bankruptcy filing.
If you had a previous bankruptcy case dismissed because you didn’t obey court orders or you requested the dismissal, you can’t file your Chapter 7 bankruptcy until the 180-day period expires.
90 Days Prior to Your Chapter 7 Bankruptcy
If you’re filing Chapter 7 bankruptcy, you must be a resident for at least 90 days in the state you’re filing it in.
If you pay back any of your creditors within 90 days prior to your Chapter 7 bankruptcy filing, the payments may be considered unlawful preference payments and the bankruptcy court may recover them and turn them over to your other creditors.
If you incur new credit of $500 or more for “luxury goods or services” within 90 days prior to your Chapter 7 filing, the debt may be presumed to be non-dischargeable, meaning you may be responsible to pay it even after your Chapter 7 debt discharge.
70 Days Prior to Your Chapter 7 Bankruptcy
If you get a cash advance greater than $750 within 70 days prior to your Chapter 7 bankruptcy filing, the debt may be presumed to be non-dischargeable, meaning you may be responsible to pay it even after your Chapter 7 debt discharge.
The Day Of Your Chapter 7 Bankruptcy—Your Case is Filed!
Your bankruptcy case is considered official when you or your bankruptcy lawyer files your bankruptcy petition with the bankruptcy court.
You will be assigned a bankruptcy trustee to oversee your bankruptcy case. The bankruptcy trustee is employed by the federal government to check your eligibility to file Chapter 7 bankruptcy, review your bankruptcy petition and schedule a meeting with your creditors.
An automatic stay order is immediately put into effect, meaning your creditors can no longer attempt to collect.
15 Days After Your Chapter 7 Bankruptcy Case is Filed
After you file your bankruptcy petition, you have 15 days to file certain financial schedules declaring your assets, liabilities, expenses, income and a statement of your current affairs. If you have a bankruptcy attorney, he or she may file these schedules for you with your bankruptcy petition.
Within about 15 days after you file for Chapter 7 bankruptcy protection, the bankruptcy court will mail the Notice of Commencement of Case to you and all of the creditors listed in your bankruptcy petition. This notice alerts you to the court-assigned date for the meeting of your creditors (which you must attend) and the deadlines for your creditors to object your case and file claims against you.
Approximately 30 Days After Your Chapter 7 Bankruptcy Case is Filed
Within 30 days of filing your Chapter 7 bankruptcy case (or before your meeting of creditors) you are required to file a Statement of Intention, where you advise the bankruptcy court whether you intend to keep your property that serves as collateral to your debts or if you’re deciding to surrender it to your creditors.
If you intend to keep your property, you must indicate your intention to either reaffirm your debts and continue making payments or redeem the property by paying the fair value market for it. If you choose to pay fair market value for it, you will receive a discharge of debt owed over the fair market value of the property.
Note: You must serve a copy of your Statement of Intention to the bankruptcy trustee and your creditors when you file it with the bankruptcy court. Your bankruptcy lawyer may be able to help you with filing and distributing these court documents.
45 Days After Your Statement of Intention is Filed:
You must surrender or keep your property as you said you would do in your Statement of Intention.
45 Days After Your Chapter 7 Bankruptcy Case Is Filed
You must file a statement containing a certificate from your bankruptcy lawyer that you received:
- an explanation of the various chapters available to you under the U.S. Bankruptcy Code;
- evidence of any payments you’ve received from any employer in the last 60 days before your bankruptcy filing;
- an itemized account of your monthly income; and
- and an estimate of your projected income/expenditures over the next year.
About 6 Weeks After Your Chapter 7 Bankruptcy Case is Filed
The bankruptcy court holds the meeting of your creditors, which you are required to attend. You will testify under oath as to the accuracy of the statements in your bankruptcy petition. If you don’t attend this meeting, your bankruptcy case will be dismissed. The meeting is informal, usually takes no longer than 10 minutes and typically not all of your creditors wind up attending.
30 Days After The Meeting of Your Creditors
The bankruptcy trustee and your creditors have 30 days after the meeting of your creditors to object to your property exemption claims.
60 Days After The Meeting of Your Creditors
Your creditors have 60 days after the meeting of your creditors to object to the discharge of any of the debt you listed in your bankruptcy court documents.
The bankruptcy trustee must move to dismiss your Chapter 7 bankruptcy case within this time period if he finds that allowing the personal bankruptcy to proceed would be an abuse of the provisions of the Chapter 7 Bankruptcy Code.
You may receive your Chapter 7 debt discharge within 60 days of the meeting of your creditors if there are no objections, but you also must complete a debtor education class, as required by law. If you fail to successfully complete this personal bankruptcy requirement, your debt may not be discharged.
90 Days After The Meeting of Your Creditors
Your creditors (except government bodies) must file their proofs of claim within 90 days after your meeting of the creditors if they wish to get payment should any of your property be liquidated (sold).
Note: Government bodies that have claims against you (like the IRS) have 180 days after the filing of your case to submit their proof of claims.
Sort Through Chapter 7 Bankruptcy Filing Dates With a Bankruptcy Lawyer
As you can see, the Chapter 7 bankruptcy process includes many deadlines and court filings. If you are considering filing Chapter 7 bankruptcy, it may be a good idea to contact a bankruptcy attorney.
A bankruptcy lawyer may be able to help you decide if filing bankruptcy is the right debt-relief option for you. He or she can also walk you through the personal bankruptcy process, file the proper legal paperwork and make sure you fulfill the Chapter 7 requirements.
Don’t put this off any longer. You have the power to reshape your financial future. Connect to a local bankruptcy lawyer by filling out our free bankruptcy evaluation form or by calling 1 (888) 632-0501.
The above synopsis of bankruptcy laws is by no means all inclusive
and is not intended to provide legal advice. These laws may have
changed since our last update and there may additional laws that apply
in your situation. For the latest information on these bankruptcy laws,
please contact a bankruptcy lawyer in your area.