From Filing to Discharge: How Long Does It Take To Finalize a Chapter 7 Bankruptcy?

Ohio bankruptcy courts typically grant a discharge and close a Chapter 7 bankruptcy case within five months. But the discharge of a Chapter 7 bankruptcy is not necessarily a cause to celebrate. That's because a discharged bankruptcy can remain on someone's credit report for up to 10 years, making it difficult for them to buy or lease a car, rent or buy a home, or even qualify for a credit card. In light of these various downsides, anyone thinking about filing Chapter 7 bankruptcy should carefully weigh the pros and cons before pulling the proverbial trigger.

Why You Should Hire an Attorney When Filing Chapter 7 Bankruptcy in Franklin County, Ohio

While it is possible to file Chapter 7 bankruptcy without an attorney, it would be in your best interest to avoid doing so. Filing Chapter 7 bankruptcy without an attorney can increase the risk of missing a deadline, making mistakes on legal forms, losing assets that may be exempt from liquidation, and inappropriately handling creditor challenges. Following a consultation, the first thing an Ohio bankruptcy attorney will do for a client interested in filing Chapter 7 bankruptcy is explain and help them get started on a mandatory credit counseling course.

Per U.S. Bankruptcy Code sections 109 and 111 of Title 11, debtors must complete credit counseling at least six months before filing for Chapter 7 bankruptcy. Upon completion of credit counseling, an Ohio bankruptcy attorney can organize and file a petition to start the bankruptcy process for their client. The remaining steps that an Ohio bankruptcy attorney will walk their clients through when it comes to Chapter 7 bankruptcy include the following:

•Automatic stay - After an attorney file a bankruptcy petition, a bankruptcy court will issue an automatic stay, which will remain active as long as the bankruptcy case is pending. Once an automatic stay goes into effect, creditors must cease all collection efforts. That includes calling and sending letters to debtors, attempting to garnish their wages, or placing levies on any bank accounts they may have.

•Meeting of creditors - Thirty days after filing a bankruptcy petition, the bankruptcy attorney and debtor must meet with a court-appointed bankruptcy trustee who will verify the debtor's identity and ask questions about bankruptcy filing under oath. Creditors can attend these meetings, but it is not mandatory.

•Mandatory financial management course - After meeting with creditors, a bankruptcy attorney will advise clients on how and when to take a mandatory

financial management course. This course teaches individuals how to manage their finances effectively. Individuals must complete this course over the phone, online, or in person before a bankruptcy court will formally discharge their bankruptcy.

Our attorneys of Wood & Brewer in Franklin County, Ohio, offer a free bankruptcy consultation because we understand that you’ll have questions. We will share our knowledge of what to expect and a proper timeline for you to recover from any financial difficulty. We invite you to contact us today!