Chapter 7 Law: How to Process Your Filing Quickly

Chapter 7 bankruptcy is a debt liquidation plan that allows a debtor to eliminate most of his unsecured debts.  From filing to discharge, the Chapter 7 process usually takes about ninety days if done properly. 

Pre-bankruptcy Planning and Organization

To ensure that your bankruptcy goes smoothly, it’s important to gather and organize all information pertaining to your assets and debts.  With regard to your assets, must be prepared to identify each asset, the location of each asset, and the value of each asset.  If any of your assets have equity, you must disclose the amount of the equity on the bankruptcy schedules. 

With regard to debts, you should gather the most recent statements, collection letters, and correspondence from each of your creditors.  You must list on the bankruptcy schedules the name, mailing address, last four digits of the account number, and the amount owed to each creditor.  

You should also gather your bank statements, investment account statements, and paystubs for the past six months.  You will be required to file your pay stubs or payment advices for the 60 day period before you file bankruptcy.  You must provide the bankruptcy trustee with a copy of your most recent tax return. 

Pre-bankruptcy Counseling

Every debtor must complete pre-bankruptcy counseling within the 180 day period preceding the filing of the bankruptcy petition.  The counseling may be completed in person, online, or over the telephone and costs $50.00.  Upon completion of the counseling session, you will receive a certificate of completion which you must file with the bankruptcy court. 

Filing the Petition and Schedules

You must properly complete and file the petition and schedules.  At the time the petition and schedules are filed, you must pay the filing fee of $299.00.  You may seek permission to pay the filing fee in installments by filing an Application to Pay Filing Fee in Installments.  If the application is granted, you must pay the filing fee in full within 120 days of filing bankruptcy. 

Meeting of Creditors

All debtors must attend the Meeting of Creditors which usually occurs within 30-45 days of the filing of the bankruptcy petition.  At the Meeting of Creditors, the bankruptcy trustee and any creditors who are in attendance will question you about your financial situation and the contents of your bankruptcy petition.  If the trustee is satisfied that you have no assets which can be liquidated to pay unsecured creditors, he will file a report abandoning his interest in the bankruptcy estate.  Within about 90 days of the date you filed bankruptcy, you will receive a discharge.  However, you must complete pre-bankruptcy counseling and file a certificate of completion before a discharge will be granted. 

Getting Legal Help

The majority of bankruptcy cases that are dismissed are filed by debtors representing themselves.  These cases are usually dismissed because the debtors simply did not know how to complete the bankruptcy petition and schedules.  Therefore, it’s best to be represented by a qualified bankruptcy attorney.