Step |
Description |
When It Happens |
1. You begin your case by filing bankruptcy papers. |
You file the petition and supporting schedules with the bankruptcy clerk, who scans them into the court records. |
When you decide to do so. Once you file, your creditors are barred from taking collection actions. |
2. The court notifes creditors that you have filed for bankrupcty.
The court assigns trustee to the case. |
A notice of your filing and a date for the creditors' meeting is mailed to everyone you list as a creditor.
The trustee's job is to review your paperwork and take possession of any nonexempt property. |
Shortly after you file your initial papers.
Tustee is appointed at the same time the notice to creditors is mailed. |
3. The means test is applied in creditors' meeting is held. |
The creditors' meeting is the only personal appearance most filers make. The judge is not there and creditors seldom attend. The trustee questions you about your paperwork. Most meetings last a few minutes. |
Between 20 and 40 days after the date you file. |
4. You attend the meeting of creditors. |
The five to fifteen minute meeting of creditors is the only court appearance most people who file for bankruptcy make. The judge is almost never there, and creditors seldom attend. The trustee and any creditors who show up can ask you about the information in your papers. |
20-40 days after you file. (Bankruptcy Rule 2003; However, in many districts, the meetings are routinely held 40-90 days after you file.) |
5. You and the trustee deal with you non-exempt property. |
The trustee either collects your non-exempt property and sells it to pay your creditors, or lets you keep the property if you pay its market value in cash, or give up exempt property of the same value. |
Shortly after the meeting of creditors. |
6. You deal with secured property. |
If on your statement of intention you said you'd surrender or redeem the collateral securing a debt, or reaffirm a secured debt, you must do so now. |
Within 45 days of the date you file the Statement of Intention. |
7. You attend budget counseling. |
You must undergo personal financial management counseling before you can get your discharge. |
Within 45 days after the creditors' meeting. Certificate of completion must be filed before the case is closed or you will have to reopen case to file it and obtain discharge. |
8. The court grants your discharge.
Your case is closed. |
The court mails a notice of discharge that discharges all debts that can legally be discharged. The automatice stay is lifted at this time. |
Roughly 90 days after you file.
A few days or weeks after your discharge. |
