If you are considering filing a Chapter 7 bankruptcy, you need to know what will be expected of you along the way. This Chapter 7 bankruptcy timeline will explain your part in the bankruptcy process, from start to finish. That way, you’ll know what to expect and what you need to be prepared to do before you file your bankruptcy petition.

Step 1: Meet with a Detroit Bankruptcy Lawyer

The first step in your Chapter 7 bankruptcy timeline is to meet with an experienced, professional and compassionate Detroit bankruptcy attorney, like John A. Steinberger. At your free initial consultation, your bankruptcy lawyer will determine if you meet the basic filing requirements and review your financial situation to decide if a Chapter 7 bankruptcy is the right choice for you. It’s a good idea to bring these items with you to the initial consultation:

• Last year’s tax return
• W-2 or recent pay stubs
• Child support or spousal support order
• Monthly budget or list of expenses
• Bank statements
• Debt invoices
• Credit card statements

If you don’t have all the information together in time for your appointment, don’t worry. You can always provide it in Step 2. For your convenience, we offer online consultations. We can review your situation on the phone and save you the trip of having to come to the office. For your first consultation, it is helpful if you bring general information of your assets, liabilities, and income, and we will work with you to gather additional information throughout the process.

Step 2: Gather Your Financial Information and

If you decide to hire John A Steinberger and Associates, the next step in your Chapter 7 bankruptcy timeline is to pay the fee and provide our office with all the needed information. Here is a list of the types of documents we’ll need before you file your petition.

It is also important to gather financial information for all sources of income over the last 6 months prior to filing the petition. For some, a W-2 or a pay stub may be all you need. However, if you are an independent contractor, are self-employed, or receive benefits like a VA pension, disability benefits, or other non-traditional income, it may be harder to find documentation of how much you earn.

You’ll also need to create a list of all the significant assets you own (house, car, collections, firearms, furniture, etc), and their value. This should be the “garage sale value” -- what you could sell it for now -- rather than the purchase price.

Step 3: Complete Pre-Bankruptcy Credit Counseling

Next on your bankruptcy timeline is the pre-bankruptcy credit counseling. Federal bankruptcy law requires each petitioner to complete credit counseling prior to filing and an educational program after the case is filed to help them avoid a second financial crisis. This is done through a credit counseling agency which we can provide to you -- a national nonprofit that offers debt counseling services. You can request a call online and complete the credit counseling over the phone. Be sure to bring us the completion certificate once you are finished.

Step 4: Prepare & Sign Your Bankruptcy Petition

While you are working on Step 3, your bankruptcy lawyer will be preparing your Chapter 7 bankruptcy petition. Our legal assistant should contact you within 10 days of being hired to set up an appointment to sign the petition and move your bankruptcy timeline forward. At that appointment, you’ll be asked to carefully review and sign the petition along with your attorney. We’ll make sure all the technicalities are met, and get it ready to file.

Step 5: File the Petition and Start the Chapter 7 Bankruptcy Timeline

With all the paperwork in order, it is time to file your case. You should be prepared to pay the Chapter 7 bankruptcy filing fees ($338 as of December 1, 2020). Your lawyer will file the case electronically and send you your case number within 1 week. Filing the petition for a Chapter 7 bankruptcy triggers the automatic stay on all collections actions. It also starts the court’s bankruptcy timeline. The court clerks will send out creditor notices, assign a trustee, and set your case for a hearing (see Step 7).

Step 6: Preparing Schedules & Statement of Intention

While the Court and the bankruptcy trustee are doing their work, your bankruptcy attorney will be preparing financial schedules and your statement of intention. The schedules list your:

• Real and personal property
• Claimed bankruptcy exemptions
• Creditors (secured and unsecured)
• Leases and contracts
• Co-debtors
• Income
• Household expenses

The statement of intention is a list of your secured debts (like mortgages and car loans), and what you intend to do about them. For each secured debt, you can choose to:

• Surrender the property
• Redeem the property
• Reaffirm the debt (see Step 9)
• Make other arrangements

In some cases, we file your schedules and statement of intention along with your Chapter 7 bankruptcy petition, but if there are outstanding questions or unresolved issues, we can submit them later, up until the creditor’s exam.

Step 7: Attend the Chapter 7 Bankruptcy Creditors’ Exam

After your case is filed (see Step 5) you will receive a notice of hearing from the bankruptcy court for the creditors exam. It is generally scheduled within 30 days after your petition is filed. You will need to , so be sure to put it on your calendar and take the time off work. Bring your picture ID and your social security card and dress for a job interview.

Your creditors have the right to attend and object to your schedules and other details in your bankruptcy petition. However, often there are no creditors at the creditors’ exam, just you, your bankruptcy attorney, and the Bankruptcy Trustee. The hearing will likely only last 10 minutes and is still being done remotely due to the Covid-19 pandemic, but that is subject to change at any time. During that time, the trustee will ask you questions about your petition and the information we provided to the court. If there are new questions or the Trustee needs more information, your case will be delayed until you and your attorney can provide it.

Step 8: Attend the Post-Filing Financial Educational Course

Before your bankruptcy can be discharged you will need to complete a second financial education course through GreenPath. Ideally, you should do this before your Creditors’ Exam, but you officially have 45 days after the hearing to submit your completion certificate. Just like before, send us the completion certificate when you are done, so we can file it with the bankruptcy court and avoid delaying your bankruptcy timeline.

Step 8: Reaffirm Continuing Debts

If you have secured debt on property you intend to keep (like a car loan on a vehicle), you will need to reaffirm that debt before your bankruptcy is discharged and the case is closed. These debts will be included in your Statement of Intention (see Step 6). After the Creditors’ Exam, you will receive reaffirmation agreements for each debt you decide to reaffirm. Generally this is just the vehicle. Sign these agreements and send them back to our office promptly so they can be filed with the court. It is our office’s policy not to sign reaffirmations for mortgages.

Step 9: Receive Discharge from Bankruptcy Court

The final step in your bankruptcy timeline is discharge. Approximately 60 days after your Creditors’ Exam you will receive a Notice of Discharge. This concludes your case. Any dischargeable debts will be eliminated, and you’ll be able to begin rebuilding your credit without worrying about unpaid balances weighing you down.

Start Your Chapter 7 Bankruptcy Timeline

At John A. Steinberger & Associates, P.C., we want to help you streamline your Chapter 7 bankruptcy timeline to move from initial consultation to discharge as quickly and easily as possible. We are a full-service bankruptcy law firm in Southeast MI. We serve debtors and families in Southfield, throughout Metro Detroit, and in the surrounding communities. Call us toll-free at (866) 690-2140 or contact us online to schedule a free initial consultation.