Chapter 7 Bankruptcy - Fresh Start

Chapter 7 bankruptcy, also called liquidation, is the most common type of bankruptcy and completely eliminates your dischargeable debt forever. Individuals who are granted Chapter 7 bankruptcy have proven to the court that they have no realistic way to repay their debt over the course of the next three to five years.  When Chapter 7 is awarded, the debtor is legally excused from having to repay any unsecured debts, and most debtors are able to keep all properties. Typically it takes a total of three to four months for a Chapter 7 bankruptcy case to be filed and discharged.

Certain types of debts cannot be cleared through Chapter 7 bankruptcy including school loans, child support, alimony, taxes, and personal injury damages.

Chapter Seven Timeline

The following flowchart represents the course of a typical Chapter 7 Bankruptcy case from the initial client interview through discharge.  Most Chapter 7 Bankruptcy Cases take between three and a half to four months from Filing until Discharge.  Case complexities and variables may extend the process.

Processing
Bankruptcy processing time varies from case to case, depending upon the size, nature and complexity of the case.  However, most cases are processed and ready for filing within two to three weeks from submission of the completed Homework Packet. 

Proof of Income
Clients who have turned in their completed Homework Packet must continue to send in paystubs or evidence of income to Doan Law Firm up until the date their case has officially been filed with the United States Bankruptcy Court.

Emergency Filings
Emergency Bankruptcy Filings can usually be filed instantly and at virtually any time to stop creditors before a foreclosure, wage garnishment, or lawsuit can take place.  See Stop Creditors.  Additional fees apply, but are usually well worth.