How Long Does It Take To File A Chapter 7 ?
A Chapter 7 bankruptcy case starts when the debtor files a petition with supporting documents saying that he or she is bankrupt. Several documents like assets and liabilities, income and expenditure, bank statements, and lease agreements are filed along with it. Tax returns are also filed along with the above mentioned documents. |
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In case of a couple, they file it jointly and declare joint income status. Child support and student loans cannot be included in the Chapter 7 file.
The court charges would include $245 for filing, $39 for miscellaneous fee, and a $15 trustee fee.
The bankruptcy form would include all the below mentioned details:
1. A list of creditors and the amount owed
2. The source of debtor's income
3. A list of all of the debtor's assets
4. A detailed list of monthly expenses, and necessities.
When a debtor files a petition under Chapter 7, it immediately puts a stop to all collection actions against the debtor. As long as the stay order continues, creditors cannot file any law suits or even make telephone calls for payments. The creditors will be allowed to know any information only by the bankruptcy clerk who sends notices to all of them.
After 20 to 40 days of filing, the trustee holds a meeting with the creditors and in case everyone attends, an agreement is reached. If the required attendance is not there, the trustee can wait up to a maximum of 60 days. So on the whole to declare a bankruptcy it might take up to 2 or 3 months.
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