bankruptcy chapter 7 processThe majority of cases that involve Chapter 7 are not complicated. In fact, the majority of bankruptcy Chapter 7 process cases typically last around four months to six months. Those who file Chapter 7 rarely make any court appearances even though they must attend one non court appearance in front of their court appointed trustee. Most cases typically end with a discharge of many or even all of the individual’s debts.

There are several main steps that are included in the bankruptcy Chapter 7 process.

Credit Counseling

One of the first steps in the process is mandatory credit counseling. Anyone who files for Chapter 7 must receive credit counseling from an agency that has been approved by the bankruptcy court to offer this service. The counseling must occur within six months before an individual decides to file.

Petition

Individuals must then file a series of documents and paperwork that includes forms such as schedules, the bankruptcy petition itself and income and expense forms. Individuals must also inform the court of other information such as the property that you can claim as an exemption.

Automatic Stay

After you have filed your petition, your automatic stay begins immediately. An automatic stay prevents your creditors from trying to continue to collect debts from you. You can speak with a qualified attorney in your area to learn more about an automatic stay.

Trustee

You will be assigned a trustee by the court who will act as an administrator over your case. The main job of the trustee is to maximize your assets to distribute among the creditors, check your paperwork for any inaccuracies and look for any possible areas of fraud.

The 341 Hearing

Those who file for bankruptcy must also have a meeting with his or her creditors. This meeting is not considered a court hearing, it is a meeting that is ran by your bankruptcy trustee. During this hearing, the trustee will ask you several questions about your finances and your petition. Although your creditors have a right to be there, most of the time they do not appear.

Your bankruptcy discharge will occur within three to six months after you begin the bankruptcy Chapter 7 process. After the discharge, your automatic stay will end and your case will be closed a short time after.

Are you in the North Georgia area and looking for bankruptcy and/or debt relief services, contact us for a free consultation.