How A Typical Chapter 7 Bankruptcy Proceeds
| Step | Description | When it Happens |
|---|---|---|
| 1. You complete a pre-bankruptcy credit counseling course. | Your attorney will provide you with a list of credit counselors approved by the U.S. Trustee. | Prior to filing your bankruptcy petition. |
| 2. Your case is filed & your creditors are notified of your bankruptcy filing. | The court will send written notices to all creditors & notice parties listed with your petition. | Shortly after you file. |
| 3. The court appoints a Trustee. | The court appoints a Trustee to examine your papers and manage your property | Shortly after you file. |
| 4. The court sets a date for the meeting of creditors | The court sets a date for the meeting of creditors. The court notifies your creditors, whose names and addresses you gave in your bankruptcy papers. | Shortly after you file. |
| 5. You and your attorney attend the meeting of creditors. | The meeting of creditors is the only court appearance most people make. The Chapter 7 Trustee and creditors who show up can ask you about the information in your papers. | Approximately 30 days after you file. |
| 6. You deal with your secured property. | If, on your Statement of Intention, you said you would surrender or redeem the collateral securing a debt, or reaffirm a debt, you must do so now. | Within 45 days of the date you file the Statement of Intention. (The statement is usually filed with your initial papers.) |
| 7. You and the Chapter 7 Trustee deal with your nonexempt property. | The Trustee may liquidate your nonexempt property to pay off creditors. You may keep the property if you pay the Trustee its market value in cash or give up exempt property of the same value. | After the meeting of creditors. |
| 8. You complete a pre-discharge financial management course. | Your attorney will provide you with a list of credit counselors approved by the U.S. Trustee. | Prior to receiving your discharge. |
| 9. The court grants your discharge. | The court will mail you a copy of your discharge order. | Approximately three months after you file. |
| 10. Your case is closed. | The Trustee liquidates your nonexempt property and distributes the proceeds to your creditors. | A few weeks or months after the discharge. |
Comparing Chapter 13 and Chapter 7 Bankruptcy
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