Chapter 7 Bankruptcy Timeline

Estimated time frame: 6 months total from filing to discharge

scroll down for Chapter 13 timeline

1. Pre-Bankruptcy Stage

• This can last as long as you need and constitutes the time period prior to filing
• We usually need 2-4 weeks to prepare your petition, depending upon the complexity of your estate and how fast you get us documentation
• Mostly this is where we gather pay stubs, bank accounts, tax forms, and review your situation
• If you have any unprotected assets, this is where we discuss your options

2. Filing date- day 1

• Everything prior to the time and date of the filing is generally dischargeable unless there is an exception to discharge.  Everything after is not.
• We will need current bank statements on the day of your filing
• You will need to have completed the financial course prior to us being able to file

3. 4002 Documents are due by day 21 after filing

• 4002 documents are all of the documents required by the trustee to review your case and includes bank statements, pay stubs, taxes, and other requested information
• If they are not timely provided, your case may be dismissed or in the alternative continued to a later date (note the court takes a very harsh view of missing timelines and may act punitively)
• We typically make sure we have all of these documents before we file so this is not an issue

4. Meeting of Creditors are scheduled about 30 days after filing

• The meeting of creditors is typically in person but may be by phone in extenuating circumstances (such as hospitalization, military deployment, covid or similiar court closure scenarios)
• You will be asked about twenty standard questions and then several to many custom questions to help the trustee understand your situation and prove the truthfulness of your situation
• Creditors do have the right to show up and ask questions, though this is rare
• Questions by the trustee or creditors do not follow the normal rules of procedures and may be considerably broader than traditional questioning during depositions or on the stand during trial

5. Trustees Report is usually filed within 14 days after the meeting of creditors occurs

• After the meeting of creditors, the trustee must submit one of the below reports within about 14 days
• A report of no distribution means the trustee finds that no assets are available for distribution and is requesting the court to close you case and prepare you for discharge.
• A report of investigation of assets means the trustee thinks there may be assets available for distribution and while your discharge will occur on time, your case may stay open for a while if distribution needs to occur.  We will discuss with you what this means and how we cooperate or fight, depending upon what the trustee is trying to do.

6. Deadlines after Meeting of Creditor deadlines, either 30 or 60 days

• within 30 days- any objections to exemption are due
• within 60 days- the 2nd financial course must be completed and submitted to the court (or you will not receive a discharge and your case will administratively close), see FRBP 1007(c)
• within 60 days- all reaffirmation agreements are due, see FRBP 4008(a)
• within 60 days- any objection to dischargeability of a debt is due, see FRBP 4007(c)
• within 60 days- any denial of discharge is due, see FRBP 4004(a)
• within 60 days- any motion to dismiss under 11 USC 707(b) is due, see FRBP 1017(e)

7. Discharge generally occurs between 90 to 180 days after filing, depending upon the Court

• In the Western District of Washington, about 6 months from time of filing is normal but it can occur in as short as 3 months and during the last crash as long as 9 months.  On a bell curve, 90% of cases discharge in the five and six month range.
• Certain debts will survive a bankruptcy discharge.  These typically include family law obligations, student loans, restitution, and other types of non-dischargeable debts.
• Once you receive you discharge, you will want to rebuild your credit and dispute any negative tradelines remaining on your credit report

 

Chapter 13 Bankruptcy Timeline

estimated time from from filing to discharge is 3-5 years

1. Pre-Bankruptcy Stage

• This can last as long as you need and constitutes the time period prior to filing
• We usually need 2-4 weeks to prepare your petition, depending upon the complexity of your estate and how fast you get us documentation
• Mostly this is where we gather pay stubs, bank accounts, tax forms, and review your situation
• If you have any unprotected assets, this is where we discuss your options
• We usually recommend considering settlement of one or more debts prior to filing if you would be in a 100% repayment plan

2. Filing date and initial plan payment planning- Day 1

• Everything prior to the time and date of the filing is generally dischargeable unless there is an exception to discharge.  Everything after is not.
• We will need current bank statements on the day of your filing
• You will need to have completed the financial course prior to us being able to file
• You will need to be prepared to make your first plan payment the same month as you file.  Accordingly we prefer to file at the start of a month for this reason, otherwise payments initially double up.
• We will file a proposed chapter 13 repayment plan along with your petition and schedules

3. 4002 Documents are due by day 21 after filing

• 4002 documents are all of the documents required by the trustee to review your case and includes bank statements, pay stubs, taxes, and other requested information
• If they are not timely provided, your case may be dismissed or in the alternative continued to a later date (note the court takes a very harsh view of missing timelines and may act punitively)
• We typically make sure we have all of these documents before we file so this is not an issue

4. Meeting of Creditors are scheduled about 30 days after filing

• The meeting of creditors is typically in person but may be by phone in extenuating circumstances (such as hospitalization, military deployment, covid or similiar court closure scenarios)
• You will be asked about twenty standard questions and then several to many custom questions to help the trustee understand your situation and prove the truthfulness of your situation
• Creditors do have the right to show up and ask questions, though this is rare
• Questions by the trustee or creditors do not follow the normal rules of procedures and may be considerably broader than traditional questioning during depositions or on the stand during trial

5. Trustees Report is usually filed within 14 days after the meeting of creditors occurs

• After the meeting of creditors, the trustee must submit one of the below reports within about 14 days
• A report of no distribution means the trustee finds that no assets are available for distribution and is requesting the court to close you case and prepare you for discharge.
• A report of investigation of assets means the trustee thinks there may be assets available for distribution and while your discharge will occur on time, your case may stay open for a while if distribution needs to occur.  We will discuss with you what this means and how we cooperate or fight, depending upon what the trustee is trying to do.

6. Deadlines after Meeting of Creditor deadlines

• within 7 days- Trustee or other parties must file objections to ch 13 plan
• within 30 days- any objections to exemption are due
• within 60 days- the 2nd financial course must be completed and submitted to the court (or you will not receive a discharge and your case will administratively close), see FRBP 1007(c)
• within 60 days- all reaffirmation agreements are due, see FRBP 4008(a)
• within 60 days- any objection to dischargeability of a debt is due, see FRBP 4007(c)
• within 60 days- any denial of discharge is due, see FRBP 4004(a)
• within 60 days- any motion to dismiss under 11 USC 707(b) is due, see FRBP 1017(e)

7. Plan Confirmation- lasts from confirmation to discharge

• Usually it takes one or more amended plans until the trustee and all creditors are satisfied and it is recommended to the court to confirm the plan
• Once the plan is confirmed, you continue to make plan payments unless there is a change in circumstances

8. Amending Plans for changed circumstances

• If at any point you experience a changed circumstance, we may need to amend your plan
• Changed circumstances include increased or decreased wages, personal injury, unanticipated debts, purchasing a replacement vehicle, etc.
• These are done on an as needed basis

9. Trustees Final Report and Notice of Entry of Discharge

• Within about 4 months of the anticipated discharge date, the trustee will put in a final trustees report
• Creditors and interested parties have 33 days to object to this report
• If there are no objections to the trustee’s final report, the trustee will put in a notice of entry of discharge
• Creditors and interested parties have 11 days to object to this report
• If there are no objections or all objections are resolved, you will receive your discharge
• It is not unusual that a house paid through the plan might have some unanticipated increases that might require a lump sum or structured settlement.  Typically it is a number that is under $10,000.00 at worst and is generally easy to resolve.

10. Final Discharge- generally 3 to 5 years after filing

• Assuming all objections are resolved, you will receive your discharge.  Your secured assets will be considered current and any remaining unsecured debts will be discharged.  Certain non-dischargeable debts will survive.  These typically include student loans, restitution, and other similar debts.
• Once you receive you discharge, you will want to rebuild your credit and dispute any negative tradelines remaining on your credit report

 

WASHINGTON DEBT LAW, PLLC SERVICES CLIENTS THROUGHOUT WASHINGTON STATE INCLUDING, BUT NOT LIMITED TO:
Seattle | Everett | Tacoma | Bellevue | Redmond | Edmonds | Mukilteo | Marysville | Lynnwood | Shoreline | Bothell | Kenmore | Woodinville | Lake Stevens | Monroe | Mill Creek | Renton | Kent | Auburn | Federal Way | Port Orchard | Port Townsend | Port Angeles | Kingston | Poulsbo | Silverdale | Bremerton | Vancouver | Spokane | King County | Pierce County | Snohomish County | Skagit County | Kitsap County | Whatcom County | Thurston County | Clallam County | Island County | Mason County

Copyright © 2023 Washington Debt Law, PLLC.  •   12535 15th Ave NE, Suite 214  •  Seattle, WA 98125  •  206.535.2559
Information presented on this website does not constitute legal advice and does not establish an attorney client relationship. WA Debt Law, PLLC is a Debt Relief Agency.