I. Introduction 

– Brief overview of what bankruptcy is and the different types (Chapter 7, Chapter 13)

– Explain that the bankruptcy process follows specific steps and can take several months from start to finish

– Go over the timeline format that will be used (chronological order)

II. Before Filing for Bankruptcy

– Consult with a bankruptcy attorney 

  – Discuss your financial situation and options

  – Get advice on which chapter of bankruptcy is best

  – Understand bankruptcy laws and procedures

– Receive credit counseling 

  – Within 180 days before filing, receive counseling from approved agency

  – Learn about alternatives to bankruptcy

– Gather financial documents

  – Tax returns, pay stubs, credit card statements, mortgage information

  – List all assets, debts, income and expenses

III. Filing the Bankruptcy Petition

– Paperwork and forms

  – Voluntary Bankruptcy Petition

  – Statement of Financial Affairs

  – Schedules of assets and liabilities

– Filing fee

  – Paid when forms submitted to bankruptcy court

  – Waivers available for low income filers  

– Automatic stay goes into effect

  – Stops collections, wage garnishments, foreclosures

  – Gives filer time to go through process

IV. First Meeting of Creditors (341 Meeting) 

– Meeting with trustee and creditors 

  – Usually held about 1 month after filing

  – Trustees ask questions about assets and debts

– Provide tax returns and other verification

– Most cases conclude after initial meeting

– Further documents may be requested

V. Discharge of Debts

– Timing depends on chapter

  – Chapter 7: About 3-6 months after filing

  – Chapter 13: After all payments made over 3-5 years

– Discharge order eliminates most debts

  – Some non-dischargeable debts remain 

  – Such as student loans, alimony, taxes

– Receive copy of discharge order

– Creditors notified and must stop collections

VI. Wrapping Up the Bankruptcy Case

– Attend any remaining hearings 

– Complete required debtor education course

– Chapter 7

  – Trustee liquidates non-exempt assets

  – Sale proceeds distributed to creditors

– Chapter 13

  – Finish all monthly payment plan

  – Catch up any missed payments

– Get final decree 

  – Shows bankruptcy fully finished

  – Case closed about 3-6 months after discharge

VII. Conclusion

– Recap key steps in timeline format

– Bankruptcy takes several months but can resolve financial difficulties 

– Stress preparing in advance and seeking legal advice

Introduction

Filing for bankruptcy can be a long and complicated process, with many administrative steps along the way. Most bankruptcy cases follow a similar timeline from the initial consultation with an attorney to the final closure of the case. Understanding what to expect and the order of events can help you prepare for each phase of the bankruptcy process. 

This article will explain the typical timeline and major milestones for both Chapter 7 and Chapter 13 consumer bankruptcy filings. Whether you are considering bankruptcy now or just want to learn about how the system works, this step-by-step breakdown will provide valuable insights.

Before Filing for Bankruptcy

The bankruptcy process does not start with the actual filing of paperwork. There are some important preparatory steps you need to take first:

Consult with a Bankruptcy Attorney

Meeting with a qualified bankruptcy attorney in your state is highly recommended before initiating any filings. The lawyer will evaluate your specific financial situation, advise you on whether bankruptcy is the right solution, and explain which chapter you should file under. They will also describe the procedures and paperwork involved so you know what to anticipate.

Receive Credit Counseling 

Within 180 days before filing for bankruptcy, you are required to receive credit counseling from a U.S. Trustee approved agency. This counseling session will discuss alternatives to bankruptcy and construct a personal budget analysis. You will receive a certificate of completion to submit with your bankruptcy paperwork.

Gather Financial Documents

Your attorney will advise you on putting together a comprehensive list of your assets, debts, income and expenses. Collecting documentation like tax returns, pay stubs, credit card statements, mortgage information, retirement account details, and anything else related to your finances will be necessary. 

Filing the Bankruptcy Petition

To officially initiate the bankruptcy, you will need to submit the Voluntary Bankruptcy Petition form along with several other documents, including:

– Statement of Financial Affairs providing your personal and financial background. 

– Schedules of assets and liabilities listing all your property and debts.

The filing fee will be due when you submit the completed forms to the bankruptcy court to open a case. However, those with incomes under 150% of the poverty guidelines can request a waiver of the filing fee.

Once your petition is filed, the automatic stay immediately goes into effect. This prevents creditors and collection agencies from continuing foreclosure proceedings, wage garnishments, vehicle repossessions, utility shut-offs, lawsuits, and other actions to collect on debts. This pause gives you time to proceed through the bankruptcy process.

First Meeting of Creditors (341 Meeting) 

Approximately one month after filing, you will attend the first meeting of creditors session, also called the “341 meeting.” This short hearing is run by the assigned case trustee and any creditors who choose to attend. You will be placed under oath and asked questions about the details provided in your paperwork. 

You should bring personal identification, social security information, tax returns, pay stubs, and any other verification the trustee requests to the 341 meeting. Most bankruptcy cases conclude after this initial session unless further documentation is needed.

Discharge of Debts

The discharge order eliminates most of your eligible debts and is the key goal of bankruptcy. The timing of the discharge depends on the chapter you filed under:

– For Chapter 7, it typically occurs around 3-6 months after the original petition date. 

– For Chapter 13, discharge happens once all repayment plan payments are made in full, usually over 3-5 years.

Some debts cannot be discharged, such as student loans, alimony, child support, and recent taxes. You will receive a copy of the discharge order and your creditors will be notified to cease all collection activities.

Wrapping Up the Bankruptcy Case

As you near the completion of the process, there are a few final steps:

– Attend any remaining court hearings or other appointments. 

– Complete the required debtor education course on financial management.

– For Chapter 7, the trustee will liquidate any non-exempt assets and distribute proceeds to creditors per the priority system.

– For Chapter 13, finish making all payments laid out in your 3-5 year repayment plan and get caught up on any you have missed.

– Once all requirements are fulfilled, the court will issue the final decree indicating your bankruptcy case is finished and the office administering it will close the case around 3-6 months after discharge.

Conclusion

While the bankruptcy timeline can vary, most filers should expect their cases to run around 6 months for Chapter 7 and 3-5 years for Chapter 13. This chronological guide outlines the sequence of major events from consulting an attorney through closing out your case after discharge. 

Bankruptcy can resolve many financial troubles through debt elimination and repayment plans. But it involves many procedural steps. Being informed on what to expect and preparing forms and documents in advance will make navigating the bankruptcy process much smoother. Seeking guidance from a qualified bankruptcy lawyer is highly recommended before embarking on this path to financial freedom.