Bankruptcy Timeline

Chapter 7

As a general rule, the Chapter 7 process takes four months from the time of the Debtor’s first meeting with an attorney from the New Life Bankruptcy Center until the Debtor receives notification that his debts have been discharged and he has been granted a fresh start and can begin his new life. The process can be divided into three separate stages.

Stage One – Pre-Filing:

Debtor completes the New Life Bankruptcy Center worksheets and compiles the documents that the New Life Bankruptcy Center will need to analyze the Debtor’s financial situation and prepare the bankruptcy petition and schedules.

Initial Consultation – Debtor meets with an attorney from the New Life Bankruptcy Center to discuss his financial situation and submit documents.  A New Life Bankruptcy Center Attorney will explain the United States Bankruptcy Code (Chapters 7, 11 and 13) and advise Debtor regarding his options.   A New Life Bankruptcy Center Attorney will also advise the Debtor regarding any additional documentation that will be necessary for the New Life Bankruptcy Center to prepare the Bankruptcy Petition and accompanying schedules.

Debtor attends Credit Counseling and obtains a Credit Counseling Certificate which will be provided to the New Life Bankruptcy Center.

Bankruptcy Petition and accompanying Schedules are prepared by the New Life Bankruptcy Center based upon the information provided to the New Life Bankruptcy Center by the Debtor.

Approximately two weeks later: Bankruptcy Petition and accompanying schedules are presented to Debtor for review.  Documents are finalized.  Debtor meets with an attorney from the New Life Bankruptcy Center to sign documents.

Stage Two:  Filing

Signed Bankruptcy Petition and Schedules are filed with the United States Bankruptcy Court.

All creditors listed in Debtor’s bankruptcy are notified of Debtor’s bankruptcy filing.

Effective immediately upon Filing:  THE AUTOMATIC STAY IS IN PLACE – CREDITORS CANNOT TAKE ANY ACTION TO COLLECT ANY DEBT OWED BY THE DEBTOR WITHOUT PERMISSION OF THE COURT.  IF CREDITORS HAVE ALREADY INITIATED COLLECTION ACTIONS – FOR EXAMPLE, A HOME FORECLOSURE OR VEHICLE REPOSSESSION – THEY MUST CEASE COLLECTION ACTIONS IMMEDIATELY AND CANNOT TAKE ANY FURTHER STEPS WITHOUT COURT APPROVAL!!!

Case number,  Judge and Chapter 7 Trustee are assigned; the New Life Bankruptcy Center will notify the Debtor of the date for the 341 Meeting of Creditors as well as items that the Debtor will need to bring to the 341 Meeting.

Debtor participates in a Financial Management Course and provides the New Life Bankruptcy Center with a Certificate of Completion. The   New Life Bankruptcy Center files the Certificate of Completion with the Bankruptcy Court.

Approximately one to two months after filing:  Debtor and New Life Bankruptcy Center attorney appear at the 341 Meeting of Creditors.  The Chapter 7 Trustee questions Debtor regarding his Bankruptcy schedules.

Assuming that the Debtors do not have any assets to distribute to Creditors, the Chapter 7 Trustee issues a no assets report and requests a Discharge Order.

Creditors must file any objections within 60 days after the 341 Meeting of Creditors.

Stage Three: Discharge!

Approximately two months after the 341 Meeting of Creditors and four months after filing the Bankruptcy Petition and Schedules:  A Discharge Order is issued and the bankruptcy case is closed.

Debtor is granted a fresh start and begins a new life debt free!!

Chapter 13

As a general rule, the Chapter 13 process takes four to six months from the time of the Debtor’s first meeting with an attorney from the New Life Bankruptcy Center until the Debtor’s Chapter 13 Plan is confirmed.   After the Chapter 13 Plan is confirmed, the Debtor will remain in bankruptcy until the Plan is completed.  The Debtor will be discharged when the Chapter 13 Plan is completed, which is  usually 60 months after the Bankruptcy Petition was filed.  The Chapter 13 process basically has four stages.

Stage One – Pre-Filing:

Debtor completes the New Life Bankruptcy Center worksheets and compiles the documents that the New Life Bankruptcy Center will need to analyze the Debtor’s financial situation and prepare the bankruptcy petition and schedules.

Initial Consultation – Debtor meets with an attorney from the New Life Bankruptcy Center to discuss his financial situation and submit documents.  A New Life Bankruptcy Center Attorney will explain the United States Bankruptcy Code (Chapters 7, 11 and 13) and advise Debtor regarding his options.   A New Life Bankruptcy Center Attorney will also advise the Debtor regarding any additional documentation that will be necessary for the New Life Bankruptcy Center to prepare the Bankruptcy Petition and accompanying schedules.

As a general rule, if the Debtor has disposable income or has non-exempt assets that he needs to protect, the attorneys of the New Life Bankruptcy Center will recommend that the Debtor file a Chapter 13 bankruptcy petition.

Debtor attends Credit Counseling and obtains a Credit Counseling Certificate which will be provided to the New Life Bankruptcy Center.

Bankruptcy Petition, accompanying Schedules and Chapter 13 Plan are prepared by the New Life Bankruptcy Center based upon the information provided to the New Life Bankruptcy Center by the Debtor.

Approximately two to four weeks later: Bankruptcy Petition, accompanying schedules and Chapter 13 Plan are presented to Debtor for review.  Documents are finalized.  Debtor meets with an attorney from the New Life Bankruptcy Center to sign documents.

Debtor is provided with information regarding the monthly payments to the Chapter 13 Trustee.

Stage Two:  Filing and Confirmation of Chapter 13 Plan

Signed Bankruptcy Petition, Schedules and Chapter 13 Plan are filed with the United States Bankruptcy Court.

All creditors listed in Debtor’s bankruptcy are notified of Debtor’s bankruptcy filing.

Effective immediately upon Filing:  THE AUTOMATIC STAY IS IN PLACE – CREDITORS CANNOT TAKE ANY ACTION TO COLLECT ANY DEBT OWED BY DEBTOR WITHOUT PERMISSION OF THE COURT.  IF CREDITORS HAVE ALREADY INITIATED COLLECTION ACTIONS – FOR EXAMPLE, A HOME FORECLOSURE OR VEHICLE REPOSSESSION – THEY MUST CEASE COLLECTION ACTIONS IMMEDIATELY AND CANNOT TAKE ANY FURTHER STEPS WITHOUT COURT APPROVAL!!

Case number, Judge and Chapter 13 Trustee are assigned; the New Life Bankruptcy Center will notify the Debtor of the date for the 341 Meeting of Creditors as well as items that the Debtor will need to bring to the 341 Meeting.

Creditors are notified of Debtor’s bankruptcy filing.

Debtor begins making payments to the Chapter 13 Trustee pursuant to the proposed Chapter 13 Plan.

Approximately one month after filing:  Debtor and New Life Bankruptcy Center attorney appear at 341 Meeting of Creditors.

New Life Bankruptcy Center and Chapter 13 Trustee negotiate the terms of the Debtor’s Chapter 13 Plan.

Approximately two months after date of filing:  Debtor’s Chapter 13 Plan is confirmed.

Stage Three: Post Confirmation

Once Chapter 13 Plan is confirmed, Debtor continues making payments to the Chapter 13 Trustee and creditors pursuant to the Chapter 13 Plan.

Approximately 5 years later, Debtor participates in a Financial Management Course and provides the New Life Bankruptcy Center with Certificate of Completion.  New Life Bankruptcy Center files the Certificate of Completion with the Bankruptcy Court.

The Chapter 13 Trustee eviews the case and asks the Chapter 13 judge to issue an Order of Discharge and lose the Chapter 13 case.

Stage Four:  Discharge!

Debtor receives the Order of Discharge and the Chapter 13 Case is closed.

Debtor is granted a fresh start and begins a new life debt free!!

Disclaimer

The New Life Bankruptcy Center is a Debt Relief Agency. We help people file for relief under the United States Bankruptcy Code. The information contained on this website is intended to provide general bankruptcy information and does not constitute legal advice or form an attorney-client relationship.

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