Chapter 7 bankruptcy is the part of the Bankruptcy Code which allows consumers to discharge nearly all of their unsecured debts and obtain a fresh start. Chapter 7 bankruptcy is often is often referred to as a “liquidation” bankruptcy, and is a relatively quick and simple process. The process typically lasts only 6-8 months from start to finish.

First, a person considering Chapter 7 bankruptcy should absolutely consult with an experienced Chapter 7 bankruptcy attorney. These consultations are commonly free. During this meeting, your bankruptcy lawyer will help you understand the Chapter 7 bankruptcy process and your available alternatives as they apply to your particular set of circumstances.Before you can file a case under Chapter 7 of the Bankruptcy Code, you will need to complete a course in pre-petition credit counseling either online or over the telephone. Your bankruptcy lawyer can help you find a trusted approved provider. After you’ve completed the course, you will receive a certificate of credit counseling.

Next, you will work with your bankruptcy lawyer to prepare complete and accurate bankruptcy schedules. You will provide your bankruptcy lawyer with certain documents including tax returns, credit reports, etc. After the bankruptcy petition and related documents are completed, you will sign them and your lawyer can file your Chapter 7 bankruptcy case.
About a month later, you will appear with your bankruptcy attorney at a 341 meeting of creditors and answer a series of questions. The meeting is recorded and presided over by a Chapter 7 trustee. Your bankruptcy lawyer will help prepare you for the meeting of creditors. Depending on the complexity of your case, some of your creditors may appear, however, most times creditors do not attend. In most Chapter 7 cases, debtors’ only exposure to any official process is through this 341 meeting of creditors.

You will also be required to complete a second course in debtor education prior to receiving a discharge. Around six or seven months after the filing of your petition, the bankruptcy court will issue a discharge order and close your bankruptcy case. You can now move on with your life with the benefit of a fresh start.