What Happens After Filing a Chapter 7 Bankruptcy Case?

 

1. Immediate Protection – The Automatic Stay

As soon as the case is filed, a powerful legal tool called the automatic stay goes into effect.
Think of it like a big stop sign that goes out to all your creditors. It tells them a bankruptcy case has been filed, and they must immediately stop:

• Phone calls and letters
• Lawsuits
• Wage garnishments
• Repossession or foreclosure efforts

This protection stays in place throughout the bankruptcy process.

2. Bankruptcy Trustee Is Appointed

The court assigns a Chapter 7 trustee to your case.
The trustee’s job is to:

• Review your documents
• Conduct a brief interview at your hearing (see below)
• Identify any nonexempt assets that can be sold to pay creditors (note: most cases are “no-asset” cases, meaning you keep everything)

3. 341 Meeting of Creditors (About 30–45 Days After Filing)

Roughly four weeks after filing, you’ll attend one mandatory meeting called the 341 meeting (also known as the meeting of creditors).
Here’s what to know:

• It’s currently being held via Zoom video in most places.
• The meeting is brief—usually just 5–10 minutes.
• The trustee will ask basic questions about your case under oath.
• Creditors are allowed to attend, but they rarely do.

4. Complete a Required Financial Management Course

Before you can receive your discharge, you’ll need to complete a two-hour financial management course, also called the debtor education course.

• This is separate from the first credit counseling session you took before filing.
• It’s typically done online or over the phone.
• You must file a certificate of completion with the court.

5. Waiting Period – Potential Objections

Creditors and the trustee have 60 days after the 341 meeting to object to your discharge or raise concerns (usually related to fraud or non-disclosure).
If no objections are filed—and that’s the case in most filings—your case moves toward discharge.

6. Discharge Order Is Issued

About 60 to 90 days after the 341 meeting, the court will issue your discharge order.
This means:

• Most unsecured debts—like credit cards, medical bills, and personal loans—are legally wiped out.
• Some debts (like student loans, recent taxes, and child support) are not dischargeable.

7. Case Is Closed

Once the discharge is granted and any remaining trustee duties are complete, your case will be officially closed.
At this point, your fresh financial start begins.

In Summary:

• ✅ Automatic stay protection starts immediately
• ✅ You attend one Zoom meeting with the trustee
• ✅ You complete a two-hour financial class
• ✅ You may receive your discharge within 3–4 months