How Long Does Chapter 7 Bankruptcy Take?

How Long Does Chapter 7 Bankruptcy Take?

Most Chapter 7 bankruptcy cases take 4–6 months to complete after filing the case with the court. The order erasing eligible debts can be granted as early as 90 days from the date the case was filed. 

This timeline includes:

1. Filling out your bankruptcy paperwork and preparing to file your case.

2. Taking the required credit counseling course before filing.

3. Filing your bankruptcy petition with the court to officially start the case.

4. Attending the 341 meeting of creditors with your bankruptcy trustee, usually about a month after filing.

5. Waiting 60 days for creditors to object to the discharge of your debts.

6. Completing the second required bankruptcy course on financial management.

7. Receiving the official discharge order from the court, which finalizes the case.

How Long Does It Take To Prepare To File a Chapter 7 Bankruptcy Case? 

Preparing to file a Chapter 7 bankruptcy case usually takes a few days to a few weeks, depending on how quickly you can gather your financial records. You’ll need documents like pay stubs, bank statements, tax returns, and details about your assets and debts. It helps to run your credit report as well, which you can do for free online.

You also need to complete a 1–2-hour credit counseling course from a court-approved provider. Once you have your documents, complete the course, and fill out the bankruptcy forms, you’re ready to file. If your documents are organized, you could be ready to file within a week, but it may take longer if you need to track down missing information.

What Happens on the Day You File Your Chapter 7 Case? 

First, the court clerk’s office assigns a case number, a judge, and a bankruptcy trustee to the case. Then it schedules the 341 meeting of creditors. The date of the 341 meeting determines several important deadlines for the bankruptcy case. 

The day you submit your bankruptcy forms to the court, sometimes called the filing date or the petition date, sets a few things in motion (more on this below). Most importantly, the automatic stay is triggered. This stops creditors and debt collectors from trying to collect a debt from you and even stops wage garnishment.

What’s the Timeline for a Chapter 7 Bankruptcy Case?

Once the case is filed, the Chapter 7 bankruptcy process can be broken into three phases: 

1. Filing date to the 341 meeting of creditors: After you file, your meeting of creditors will be scheduled in the coming 30 days.

2. 341 meeting of creditors to your bankruptcy discharge date: After your 341 meeting, creditors get 60 days to object to the discharge of your debts. 

3. Bankruptcy discharge to case closure: The court typically closes bankruptcy cases 1–2 weeks after they issue a bankruptcy discharge, which is the order erasing all your eligible debt. 

Here’s more information on each phase.

Phase 1: Filing Date ➡️ 341 Meeting of Creditors (~30 Days)

The 341 meeting is scheduled about 30 days after the petition date. The meeting itself typically takes less than 10 minutes to complete. 

While waiting for your 341 meeting, you’ll likely hear from your trustee. They’ll let you know what documents they need from you to prepare for your 341 meeting. As long as you’ve kept the documents you used when preparing your bankruptcy forms, doing this shouldn’t take very long. 

Most filers also get the financial management course out of the way while they wait for their 341 meeting. Bankruptcy law requires every person filing bankruptcy to complete this education course. It tends to be a little longer than the first course, usually around two hours. 

Want some help preparing? Check out our popular YouTube video on preparing for your meeting of creditors.

Phase 2: 341 Meeting of Creditors ➡️ Date of Discharge (~60 Days)

The date of your 341 meeting determines a lot of deadlines for the rest of your case. Here is how it works: 

• 341 meeting date + 30 days = Deadline for the trustee (or creditors) to object to an exemption you claimed. This deadline starts when the 341 meeting is “concluded,” which can be delayed if the trustee schedules a follow-up meeting.

• 341 meeting date + 45 days = Deadline to deal with secured debts, like car loans (if you want to keep the car through reaffirmation or redemption).

• 341 meeting date + 60 days = Deadline for creditors to object to having their debt discharged. Creditor objections are not very common in typical Chapter 7 cases, but they do happen.

Once the deadline to object to the discharge has passed, the court will enter the discharge order. This is the court order that clears your debts!

Can the Discharge Date Be Delayed? 

Yes. There are three main reasons your discharge date may be delayed.

• You don’t take your financial management course on time. If you don’t take your financial management course after filing and submit a certificate of completion, the bankruptcy court can’t grant your discharge. If too much time passes, the court can close your case without discharging your debts. 

• Someone objects to the discharge. This doesn’t happen at the 341 meeting (creditors rarely show up for those) but when the creditor files a written objection with the court. Objections from creditors can happen if the filer used their credit cards or took on new debt shortly before filing their bankruptcy case. The trustee can also object to the entry of the discharge (or at least request a delay). This typically happens if the filer is not providing the trustee with the information they requested. 

• A reaffirmation hearing is scheduled. The United States Bankruptcy Code requires the court to review and approve reaffirmation agreements that are not signed by a bankruptcy attorney. Since hearings are set based on availability by the judge and other factors, this hearing may not happen until after the 60-day objection deadline has passed. The discharge can’t be granted until after the reaffirmation hearing has been completed. 

Phase 3: Discharge ➡️ Case Closed

Once the bankruptcy trustee has determined that there’s no property they can sell for the benefit of creditors, they’ll file a Report of No Distribution. This lets everyone know that it’s a no-asset case, and it can happen anytime after the 341 meeting. The bankruptcy court typically closes no-asset cases within 1–2 weeks. 

If the trustee hasn’t filed a Report of No Distribution, the case will stay open until the trustee signals to the court that they’ve completed their work on the case. The timeline on this can vary a lot because it depends on what kind of property the trustee is selling and what else is going on in the case.

In some cases, all the trustee is waiting for is the filer's tax return for the year their bankruptcy case is filed in. If there isn’t a specific exemption for a tax refund, the trustee may use a portion of the refund to pay creditors.

Usually, not much else is required from the filer during this process. But, if the trustee asks for additional information or otherwise requests assistance with the sale of property, the filer has a duty to help.

How Long Does Chapter 13 Bankruptcy Take? 

Chapter 13 bankruptcy takes 3–5 years. During that time, you’ll repay at least a portion of your debts in a court-approved repayment plan. As part of the repayment plan, secured debts, like car loans, are paid off. Depending on the type of debt you have, this type of bankruptcy may provide more debt relief than a Chapter 7 filing. It’s always best to speak to a bankruptcy attorney about a Chapter 13 filing, as there are many moving parts in the Chapter 13 bankruptcy process. 

Chapter 7 Bankruptcy FAQs

Here are answers to some commonly asked questions about Chapter 7 bankruptcy cases.

What Is Chapter 7 Bankruptcy? 

Chapter 7 is a type of bankruptcy that erases your debts to give you a fresh start. To file bankruptcy under Chapter 7 of the United States Bankruptcy Code, you have to pass the means test. The means test shows the bankruptcy court that you’re eligible for debt relief because your monthly income isn't enough to pay your unsecured debts in a Chapter 13 bankruptcy.

To learn more, read Chapter 7 Bankruptcy Explained.

What Debts Get Erased in Chapter 7?

Chapter 7 bankruptcy can wipe out most unsecured debts, including credit card debt, medical bills, and personal loans. You may also be able to discharge your federal student loans, but you’ll have to prove undue hardship and go through a separate process called an adversary proceeding. Some debts, like child support and alimony, can’t be erased in Chapter 7.

Chapter 7 is sometimes called liquidation bankruptcy because the bankruptcy trustee is allowed to sell any non-exempt property you own and use the funds to pay your creditors. However, this rarely happens, as most people’s belongings are fully protected by state or federal bankruptcy exemptions. 

To learn more, read What Type of Debt Can I Erase in Chapter 7 Bankruptcy?

How Long Does It Take To File Chapter 7 Using Upsolve’s Free Filing Tool?

Upsolve offers a free bankruptcy filing tool for people with a simple Chapter 7 case. If you’ve already organized your financial records (like pay stubs, tax returns, bank statements, and information about your assets and debts), you might be able to complete the steps in the app in just a few hours. Others may take a few days or even weeks, depending on their pace. Once you’ve submitted all your information, a trained team member will review your documents, which usually takes about two weeks. 

To keep things moving, be sure to check your my.upsolve.org account for any messages or requests from our team, and respond promptly with any updates.

Let’s Summarize…

Once filed, a Chapter 7 bankruptcy typically takes about 4–6 months to complete. The bankruptcy discharge order that provides you with permanent debt relief is granted 3–4 months after the case is filed. 

If you’re struggling to make ends meet and just can’t make a dent in your credit card debt, keep learning more about your bankruptcy options. While it’s not right for everyone, Chapter 7 bankruptcy helps thousands of families clean up their credit report and get back on their feet every year. It’s a myth that your credit score will be doomed forever. Most people are able to rebuild their credit to better than it was within 1–2 years of the discharge. Check out the video below ⬇️ for more!