The Time Line For Chapter 7 Bankruptcy

If you are planning to file under chapter 7 bankruptcy it is very important for you to keep in mind the following timeline. The following timeline describes the rules at various stages before and during bankruptcy.

One Year Prior To Filing Your Case

  • Within the last one year, if you ever tried to deceive any of your creditors by destroying, hiding, or transferring your properties, you petition under chapter 7 may be denied. Instead, your creditors may get the right to recover their amount through those properties.
  • Within this period, if you have make repayment to one of your creditors who is also a close business partner or your relative, the bankruptcy court will consider such payments as unlawful. The court may recover this payment so that other creditors could be paid off in settlement to the debts that you owe to them.

    • 180 Days Prior To Filing Your Case

  • Within this period, if you had filed under chapter 7 bankruptcy that was dismissed because you didn't follow the court orders properly or requested the court voluntarily to dismiss, you will not be able to file again under the same chapter within 180 days.

    • 90 Days Prior To Filing Your Case

  • If you are the resident of a state for less than 90 days, you will not be able to file your petition in that state. In that case, you will have to file your case in the state where you had been the resident for at least 180 days prior to living in the present state.
  • If you obtained some new credit of $500 or more in order to purchase some luxury products within this period, such debts will not be discharged even if you are declared as bankrupt.

    • 70 Days Prior To Filing Your Case

  • If you have obtained a payday loan or any kind of cash advance of $750 or more within 70-day period prior to filing your petition, such debts will be considered as non-dischargeable.

    • During The Time When You Have Filed The Petition

  • Always remember that filing bankruptcy in an appropriate court simply means that your case has formally commenced.
  • As soon as you file your petition, the court will enter an automatic stay order.
  • Within the 30-day period of automatic stay, your creditors will not be able to take any collection or legal action against you. Any harassing collections calls during this period will be considered as unlawful.
  • After that, a notice will be sent to all the creditors that were mentioned in your petition informing them that you have filed for chapter 7 bankruptcy.
  • Now, the court will appoint a trustee who will review your petition and oversee your specific case.

    • Author: Saurabh K Jain

    Filing for chapter 7 bankruptcy may not be a difficult thing, but keeping in view the complicated laws pertaining to the same, it is very important for you to understand the different stages before you file your petition in the bankruptcy court. You have to keep in mind the timeline while you are filing bankruptcy


    Source: http://ezinearticles.com/
    Added: April 26, 2008
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