How long does Chapter 7 bankruptcy take?

When you're ready to file bankruptcy, you want it over with. The good news is that Chapter 7 is usually the fastest kind of bankruptcy. Collection stops the day you file, and most people get their discharge a few months later. Here is the timeline, step by step.

Step 1: Preparing your case (usually a few weeks)

Most of the work happens before anything is filed. We gather your:

• Recent pay stubs and income records
• Tax returns
• Bank statements
• A list of your debts, and the property you own

We use this to complete the means test, which compares your household income to the median income for a household your size in California. It decides whether you qualify for Chapter 7. We also choose the exemptions that protect your property.

You must also take a short credit counseling course from an approved provider within 180 days before you file (11 U.S.C. § 109(h)). It can be done online or by phone, often in an hour or two.

How long this step takes is mostly up to how fast documents come in. Our bankruptcy processor, Annissa Henry, works with you to collect what we need. If a garnishment, foreclosure or repossession is about to happen, we can sometimes file an emergency bankruptcy first and finish the paperwork shortly after.

Step 2: Filing (day one)

Your case begins the day we file your petition with the U.S. Bankruptcy Court. That same day, the automatic stay takes effect. It stops most collection, including calls, lawsuits, wage garnishments and foreclosure sales (11 U.S.C. § 362). The court appoints a trustee, a person who reviews your case and checks whether any property can be sold to pay creditors.

Step 3: The 341 meeting (about 3 to 6 weeks after filing)

The "meeting of creditors" is named after the section of the Bankruptcy Code that requires it (11 U.S.C. § 341). It is not held in front of a judge, and it is often done by video. The trustee places you under oath and asks basic questions about your paperwork, income and property. Creditors may attend, but they rarely do. Most meetings take only a few minutes, and we attend with you.

Step 4: The waiting period and debtor education (about 60 days)

After the 341 meeting, creditors and the trustee have 60 days from the first date set for the meeting to object to your discharge or to ask that a specific debt survive. Most cases have no objections.

During this time you must take a second course, called debtor education or financial management. You will not receive a discharge until the court has proof you finished it.

Step 5: Discharge (usually about 3 to 4 months after filing)

If no one objects and your course is done, the court enters your discharge shortly after the objection deadline passes. This is the order that wipes out your dischargeable debts. You will get a copy by mail. Some debts, like support and most student loans, survive.

Step 6: Case closing

In most Chapter 7 cases, the trustee finds no property to sell. These are called "no-asset" cases, and the court usually closes them soon after the discharge. If the trustee does find property to sell, the case stays open until that property is sold and the money is paid out. That can take months or longer, but your discharge usually is not held up by it.

What can slow a case down

• Missing documents. The trustee can postpone your 341 meeting if pay stubs, tax returns or bank statements are missing.
• Missing the 341 meeting. If you don't appear, the meeting is reset, and your case could be dismissed.
• Means test questions. If your income is close to the line, the trustee may ask for more records.
• Property the trustee wants to sell. This keeps the case open longer.
• Reaffirmation agreements. If you are keeping a car loan, the court may need to review the agreement.
• Objections. A creditor lawsuit claiming fraud, or a trustee objection, can add months.
• Not finishing debtor education. The court may close your case without a discharge.

How Chapter 13 compares

Chapter 13 takes much longer. Instead of a discharge after a few months, you make monthly payments under a court-approved plan for three to five years, and the discharge comes at the end. People often choose it to save a house from foreclosure, catch up on a car loan or protect property Chapter 7 would not. Learn more on our Chapter 13 page.

Ready to get started?

Our page on the process of filing for bankruptcy goes into more detail, and our Chapter 7 page explains who qualifies. Bankruptcy consultations are free. Call (562) 612-7806 any time or request a consultation, in person or by video.

• Sources: 11 U.S.C. § 109(h) (credit counseling)
• 11 U.S.C. § 341 (meeting of creditors)
• 11 U.S.C. § 362 (automatic stay)
• Fed. R. Bankr. P. 4004 (discharge and objections)

This article is general information, not legal advice. Every case is different, and past results do not guarantee a similar outcome.