A typical Chapter 7 bankruptcy case from start to finish

• Each debtor receives a briefing from an approved credit counseling agency
• Required documents are filed with the clerk of the bankruptcy court
  • Including the credit counseling certificate, statement of monthly income, petition, schedules, statement of financial affairs, mailing list, statement of social security number, statement of intentions, payment advices, etc.
  • The required filing fee is paid
• A notice of the bankruptcy case is sent to each debtor, their attorney (if any), creditors, and the Trustee
  • The notice shows the date, time and location of the required initial meeting
• The Trustee sends each unrepresented debtor a letter containing important information and requirements
  • Documents must be provided to the Trustee on time, usually within 10 calendar days from the date of the letter
  • Tax refunds received after the case is filed usually must be turned over to the Trustee
• Each debtor attends the required initial meeting
  • The Trustee will ask certain required questions and any additional questions he may have; creditors also have the opportunity to ask questions
  • The Trustee will indicate whether additional information or documents are requred and will instruct each debtor concerning property that must be turned over to the Trustee
• Each debtor completes an instructional course from an approved debtor education provider 
  • The required statement of completion is filed with the clerk of the bankruptcy court
• The debtor receives a discharge usually within 60 to 120 days after the initial meeting
  • The bankruptcy court issues the discharge; questions regarding the discharge must be directed to the clerk of the court (the toll-free number is 1-888-549-5336)
  • Each debtor must still turn over property (such as tax refunds) to the Trustee and continue to cooperate with the Trustee even after receiving the discharge
  • Failure to cooperate with the Trustee or disclose all property may result in denial or revocation of the discharge
  • Creditors may object to the discharge of all or certain debts
• The Trustee liquidates available assets to pay creditors
  • If assets are administered, a notice of proposed distribution is mailed to the debtor and all creditors
  • If no assets are available, the Trustee files with the court a report of no distribution
• The case is closed
  • If assets are being administered by the Trustee, the case may remain open for a year or more before it is closed
  • The Trustee usually cannot expedite the closing of a case to accomodate requests by creditors or debtors