How long to complete a Chapter 7 bankruptcy?
By Mark Buckley, Rhode Island Bankruptcy Lawyer on Aug 7, 2009 in Bankruptcy Practice and Procedure, Discharge of Debt, Means Testing, Your Bankruptcy Attorney & You
RI Bankruptcy Court Providence, Rhode Island
The most common form of consumer bankruptcy, a Chapter 7 filing, takes about 90 days to complete. For each case filed, the court assigns a trustee and schedules a date for a meeting of creditors. This meeting occurs about 30 days into the process. (And it does NOT take place in a courtroom.)
At the meeting of creditors, the bankruptcy trustee asks the debtor a series of questions. This is done to make sure the petition is complete, accurate and truthful. (Most trustees conduct about 6 of these meetings in a half-hour.) After the meeting is over, 60 days remain before the debts are scheduled for discharge.
So what happens before the 3-month timeline? This is more difficult to answer. Because every case is unique, it takes some time for the bankruptcy lawyer to determine “when” a case should be filed. Here are a few reasons why:
- record gathering: tax returns, pay records, and credit statements are needed in advance
- legal issues: time may be needed to explore particular legal concerns
- cooling off period: cards may have been used recently for purchases or cash advances
- income spike: because the means test measures gross income over a 6 month window, it may be beneficial to wait a while for income to lower
- legal expenses: time is needed to pre-pay court costs, education expenses and legal fees
If you are considering filing bankruptcy, you should request a consultation with a qualified attorney immediately. This will allow time to properly prepare your case and make the process less stressful.
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