Bankruptcy Timeline

You’ve done it. You gathered all the information and gave it to your attorney (or filled out the forms yourself). You’ve reviewed and signed everything. It’s done. You filed your chapter 7 petition.

Take a deep breath and relax. The worst is over. Your fresh start has begun!

Once your bankruptcy petition is filed, you’ll receive notice of three important things:

1. Your case number;

2. The date of your 341a examination, along with information about the examination and your chapter 7 trustee (a court appointee who administers your case); and

3. The deadline for creditors (or the trustee) to object to your discharge.

Keep your case number and filing date handy in case you get calls from any creditors. If you do, give them the case number, filing date and, if you have an attorney, their name and phone number. The bankruptcy filing stops any and all actions by creditors to collect what you owe them. If any creditor bothers you after they have notice of the bankruptcy, the Bankruptcy Court can hold them in contempt.

Put the date of your 341a on your calendar. Shortly after you file, you (or your attorney) will be contacted by your trustee regarding procedures for your 341a (usually telephone or Zoom instructions). The trustee will also request certain documents and tell you how to deliver them to the trustee.

Most trustees want copies of your most recent state and federal tax returns (signed), your photo ID and Social Security card, three months’ bank statements (including one for the filing date) and (if you didn’t file pay stubs with your petition), up to six months of pay stubs.

You MUST appear at your 341a. If you don’t, the trustee will generally continue it once before asking the court to dismiss your bankruptcy case. If you can’t make it for ANY reason, call the trustee’s office ahead of time, tell them why you can’t make it, and ask that it be continued.

At the 34a, the trustee will ask you a few easy questions like whether you read your bankruptcy petition before you filed it, is everything in the bankruptcy petition true and correct, and possibly some questions about your income or your assets. At the conclusion, if the trustee has received all of the requested information, the examination will be concluded and the trustee will file a “no asset” report with the court.

If the trustee wants more information, your 341a will be continued so that you can provide the requested information. The same applies if you didn’t provide what was requested prior to the examination. A continued hearing is nothing to worry about. It does not change the deadline for creditors to file objections. Just be sure you provide everything to the trustee and show up at the continued hearing.

Once the 341a is concluded, it’s pretty much just a waiting game. Creditors or the trustee must file any objections to your discharge within 60 days of the initial 341a examination. Don’t sweat it. Objections are hardly ever filed. 

If an objection is filed, you should consult an attorney. An adversary proceeding (the way an objection is made) is not something you should try to handle yourself.

Once the 60 days has gone by and no objections have been filed, you will receive your discharge notice from the court (usually happens within a day or two). And shortly after that, your case will be closed.

It’s time to celebrate.

Tip for the Day: Make sure you provide your trustee with any requested paperwork. That’s the quickest and easiest way to make sure your 341a goes smoothly and is concluded at the end of the hearing.

Next week’s topic: Student loans