Chapter 7 Bankruptcy Basics

Chapter 7 bankruptcies are technically referred as Liquidation Bankruptcies. Chapter 7 bankruptcies are more commonly referred to as a “Fresh Start Bankruptcy”. A Chapter 7 bankruptcy takes approximately four months from the time it is filed to when it is completely finished.

Chapter 7 bankruptcies discharge all debts with the most notable exceptions being taxes, student loans, child support and certain types of criminal restitution. The typical timeline for a Chapter 7 begins with its filing. Approximately 30 days after filing client and attorney will attend the Chapter 7 “341” meeting of creditors. On average these hearings take between 5-10 minutes. Our Chapter 7 “341” hearings take on average 3-5 minutes.

Following the Chapter 7 “341” hearing there is a 60 day period during which the trustee has time to administer the case. During this 60 day interval, the trustee will either issue a No Asset Report meaning that the trustee will not be seizing any assets or monies from the debtor or the trustee will issue an Asset Report. If the trustee issues an Asset Report, the trustee will make a list of monies or items that the bankruptcy estate intends to claim from the debtor.

You will know whether you stand a chance of losing property at the end of your consultation. Our clients do not find out that they will lose property or money at the “341” hearing. After the 60 day period has expired the trustee issues their Asset or No Asset Report. In many cases this report is issued before the end of the 60 day period.

At the end of the 60 day period, most people will receive what is referred to as a Discharge Order. This is the order from the federal court which actually discharges the debtor’s debt. Depending upon which judge you draw, (they are assigned by random lot) your case will take an additional two weeks to one month before the final order is issued closing the case.

Prerequisites

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Morse Law, LLC

  • 910 16th Street Mall Ste 1100
    Denver, CO 80202
  • 303-300-6684
  • 720-941-2755

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Morse Law, LLC

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    Colorado Springs, CO 80903
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Morse Law, LLC

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    Loveland, CO 80538
  • 970-672-1263
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