Blog > 2021 > October > How Long Does It Take To File A Chapter 7 Bankruptcy?
If you’re in financial trouble and do not see any way out, you can file for Chapter 7 liquidation bankruptcy and start over again. Unlike Chapter 13, which takes a few or several years, the Chapter 7 process is relatively short. However, it is only advantageous if you do not own a home or, if you do, you do not have a lot of equity in your home.
In some cases, yes. California and federal laws allow you a certain amount for exemptions, including your homestead. If you have more equity than the allowable amount, you will lose your house.
Additionally, Chapter 7 is not the best for someone with many assets unless you plan on getting rid of those assets. The bankruptcy trustee will auction or sell your assets over and above the exemptions allowed for each category.
No. It could take from 90 to 120 days for most Chapter 7 bankruptcy cases. However, some cases could take longer, depending on your assets and the length of time it takes the trustee to control and sell them.
After your consultation, you provide your attorney with your financial documents and other documentation. The attorney completes the petition, schedules, and other documents the bankruptcy court requires, then files your bankruptcy case. You will have a chance to review your records before the attorney files the claim if you wish.
Shortly after your attorney files your case with the bankruptcy court, the court assigns a trustee and a judge. You will have to take a credit counseling course. The trustee then schedules a 341 meeting, which is a meeting between you, the trustee, and creditors. Your attorney attends this meeting with you. More often than not, creditors do not even show up, but your appearance is mandatory.
You must have completed the credit counseling course before the 341 meetings. Otherwise, the trustee will require you to take it and might request another appointment. The trustee typically tries to schedule the 341 meeting about 30 days after you file for bankruptcy. Refusing to take the credit counseling course could result in the court dismissing your bankruptcy. You then have to start over again unless the court allows your excuse and reinstates your bankruptcy.
Once you attend the 341 meetings, if you have very few assets, you should receive a discharge in 90 to 120 days or about 60 to 90 days after the 341meetings. If you have assets, such as a house, that you are discharging in bankruptcy, the process could take longer.
Contact a Chapter 7 bankruptcy attorney at SM Law Group for a free consultation if you are ready to file bankruptcy.
If you are looking for ways to get debt-free, don’t hesitate to contact us today through our website or give us a call at to schedule your free consultation.
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