Chapter 7, or the liquidation bankruptcy, is the process of bankruptcy in which the debtor turns over significant assets and the sale of those assets will go to creditors in order to pay off debts. The debtor will receive a blow to their credit score, but they will receive a financial fresh start. If you are looking to file for chapter 7 bankruptcy, it may help you to know what to expect from the chapter 7 timeline.
First, you will need to complete a course on credit counseling and provide the court with the certificate you receive for attending. Then, you may begin setting in motion the steps toward bankruptcy:
- You start by filing a bankruptcy petition and paying necessary fees
- You must then give over your tax returns to the trustee appointed to you
- Prior to the noted deadline, file your statement of intention
- The creditors meeting will take place around a month after you file
- One month after the creditor’s meeting, the deadline for performing statement of intention will approach
- At about the three-month mark, you should have submitted your Form 423 and completed a financial management course
- The reaffirmation agreement signing will take place between you and your creditors
- You will be granted your discharge and be cleared of your debts – this may occur up to 100 days after initially filing
Note that, depending on the circumstances surrounding your situation, how you approach your bankruptcy may make a difference in the length of the process and the steps therein. Understanding what to expect is the first move in pursuing a clean slate.