If you are looking to file for bankruptcy, Los Angeles based bankruptcy law firm Recovery Law Group, suggests Chapter 7 as one of the best ways to get rid of your debts, provided you are able to qualify for the same. A typical Chapter 7 bankruptcy process consists of six steps:
- You are required to complete a mandatory credit counseling course before you file your bankruptcy papers. This can be one either online or by phone.
- You need to fill your bankruptcy forms. These are available online. Along with the forms you are expected to provide a list of all your properties, your creditors, information regarding all financial transactions that took place over the past two years.
- Provide your bankruptcy trustee with a copy of the latest income tax return and any other relevant documents asked by the trustee.
- 30 days after filing the bankruptcy papers, a creditors’ meeting is scheduled which is mandatory to attend. The meeting is conducted by the trustee in a hearing room and is attended by the bankruptcy filer, their attorney, the trustee and possibly the creditors. You are required to provide an answer (under oath) to all questions asked by the trustee pertaining to your bankruptcy case.
- Within 60 days of the creditors’ meeting, you are required to attend a mandatory budget counseling (online or via phone) and inform the court (by filing a form) about the completion of the course also provides a certificate of completion from the counseling.
- You are not allowed to operate a business with inventory or give away or sell any property without your bankruptcy trustee’s permission until you get a written discharge of your debts by the court. Usually, this takes place around 60 to 75 days after creditors’ meeting. Usually, during this time frame, the creditors can, but rarely object to your getting rid of debts. In case you have any non-exempt property, the trustee makes arrangement for turning it over so that it can be used to pay your unsecured creditors. However, most Chapter 7 bankruptcy filers do not have non-exempt property.
The Chapter 7 bankruptcy timeline is very short.
| Prior to filing papers | Mandatory credit counseling |
| Filing date | File papers to start the bankruptcy process |
| 30 days after filing papers | Creditors’ meeting |
| Up to 60 days after creditors’ meeting | Compulsory budget counseling |
| 60 days after creditors’ meeting | Get written discharge of your debts from court |
In case you are worried about your bankruptcy case, consult with expert bankruptcy lawyers at 888-297-6023.