Are you planning on filing for chapter 7 bankruptcy? If so, you will need to keep the following timeline in mind. You will discover the rules and different stages that you will go through before and after bankruptcy.
One Year before you file your case
So that you know, if you ever tried to deceive your creditors by destroying, hiding, or transferring any funds or properties within the last year, then your petition for a chapter 7 bankruptcy might be denied. This will give your creditors the chance to use those properties to recover the money you owe them.
Also, within this year if you paid off or made payments on any of your debts that are with close business partners or anybody that is a close relative, then the courts, might consider this payment unlawful. They may seize this payment and allow your other creditors to use it to pay themselves off.
6 months before you file your case
If you have filed for a chapter 7 bankruptcy and it was dismissed because you ask the court to do so or because you did not follow the court orders the right way, then you will not be able to refile under the same chapter again for 6 months.
3 months before you file your case
If you have just moved to a new state and you have not had a permanent address in that state for at least 90 days, then you cannot file your case in that state. You would have to either wait or you would have to file in your previous 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.
Also, if you have used your credit to purchase luxury items of $500 or more, within the last three months, then these debts will not discharged and you will be responsible for these debts.
70 days before you file your case
If you have received a payday loan or any type of cash advance for over $750 and it is less than 70 days old, then you will not be able to discharge these debts. You will have to repay these back.
Once you have filed your case
Once you file your petition you will have what is called an automatic stay order that will be filed. During this period it will be unlawful for your creditors to take any collection or legal action against you. Any calls of this nature will be considered unlawful and the creditors know it.
Next, there will be a letter sent to all your creditors that will inform them of the petition that you have filed with the courts for chapter 7 bankruptcy.
Last, there will be a trustee that will be appointed to review your case for chapter 7 bankruptcy.
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Chapter 7 Bankruptcy