Find out exactly when a Paducah, KY Chapter 7 bankruptcy case is closed.
Chapter 7 is a type of bankruptcy enabling individuals to clear their debts by liquidating some assets. It is the bankruptcy trustee’s duty to sell all of the debtor’s non-exempt property and use the funds to pay off the creditors. Since you’ve already filed, you might be wondering “when does my chapter 7 bankruptcy case end in Paducah, KY?” Answering this requires legal help from a seasoned bankruptcy attorney.
Although many websites often discuss what happens during the bankruptcy filing process, information on what happens after a Chapter 7 bankruptcy case isn’t talked about a lot. There’s no doubt that you can gain so much from filing Chapter 7 bankruptcy. But you must be prepared for its long-term negative effects – particularly on your credit score.
If you keep asking yourself ‘When does my chapter 7 bankruptcy case end in Paducah KY?’, continue reading to learn more.
Chapter 7 Bankruptcy Discharge
Being discharged from a Chapter 7 bankruptcy case means that an individual is no longer legally required to pay remaining qualified debts. A bankruptcy discharge also prevents creditors from doing any form of collection against the filer. This means creditors won’t be allowed to send collection letters, make phone calls, or file any lawsuits as soon as the order is given.
In most cases, the bankruptcy court can issue a discharge order in as little as 3 to 6 months (60 to 90 days) after the 341 creditors meeting. Furthermore, approximately 99 percent of Chapter 7 cases result in the debtor receiving a bankruptcy discharge.
Are you wondering, ‘when does my chapter 7 bankruptcy end in Paducah, KY”? If so, know that a seasoned bankruptcy attorney from Farmer & Wright, PLLC is always ready to help you with your bankruptcy concerns.
How to get a discharge in Chapter 7
Before your debts can be discharged, make sure that you have completed the steps in filing Chapter 7 bankruptcy. These include:
- Taking and passing the Chapter 7 Means Test
- Filling out bankruptcy forms indicated details regarding your current financial situation (expenses, income, assets, and existing debts)
- Paying a filing fee if not waived
- Providing the Chapter 7 trustee with the 521 financial documentation
- Attending the 341 creditors meeting (this can be done by a Kentucky bankruptcy attorney)
- Opposing to any objections made to the discharge order
- Completing a credit counseling course within 180 days of submitting your petition
- Completing a debtor education course anytime prior to getting discharged
Once you’ve finished every step, a discharge letter will be mailed to you at least 60 days after the creditor’s meeting barring any further opposition made by your creditors.
What a Chapter 7 case can and cannot discharge
After successfully filing for Chapter 7 bankruptcy and receiving a discharge order from the court, the following debts will be permanently erased:
- Credit card debt
- Medical bills
- Unpaid utility balances
- Personal loans and other unsecured debts
Even though a Chapter 7 case effectively gets rid of most debts, there are a few exceptions:
- Child and spousal support
- Legal fines
- Most student loans
- Tax bills incurred recently
Still not sure of the answer to ‘When does my chapter 7 bankruptcy case end in Paducah KY’? The succeeding sections will further discuss what happens once you receive a discharge and when the case is officially closed.
When a Chapter 7 Case Ends
Contrary to what most people think, a Chapter 7 bankruptcy case does NOT end when you get discharged from it. Though most of your debts have been legally wiped out, your case has just started. Just ask the Chapter 7 trustee.
Only the bankruptcy court has the power to close a Chapter 7 case or dismiss it without a discharge. Thus, the case ends once the court decides to close it and not when you receive the discharge notice.
To better understand what leads to a closed Chapter 7 case and finally answer the question of ‘when does my chapter 7 bankruptcy case end Paducah KY’, it’s crucial to know what happens after you get discharged and what could possibly happen beyond that.
Non-exempt assets will be sold
Chapter 7 bankruptcy involves asset liquidation, requiring you to determine your ability to retain assets. Working with a Kentucky bankruptcy lawyer should help you know which of your properties are and aren’t exempt. Since exempt assets like your house, car, social security, home appliances, and furniture are covered by bankruptcy protection, you should keep most or all of them. Non-exempt assets, on the other hand, will be turned over to the trustee for liquidation.
How fast your Chapter 7 case is closed often depends on whether your assets are exempt or non-exempt. A no-asset Chapter 7 bankruptcy typically is closed shortly after discharge as there are no non-exempt assets to sell.
Owning several non-exempt properties is a different story since it could take several months or even years before your case is closed since the Chapter 7 trustee may need time to successfully complete the liquidation process or file necessary lawsuits against abusive creditors.
A closed case can be reopened
Even after the court has decided to close your Chapter 7 case, you can still reopen it under these conditions:
- Adding a debt that you initially forgot to include
- Adding a non-exempt asset for liquidation
To avoid repeatedly reopening a Chapter 7 case, take your time in listing all debts you’re trying to erase and being truthful in declaring your assets.
Discharge may get revoked
In certain cases, an interested party (at least one of your creditors or the trustee) can file a motion to revoke your discharge. The court will approve of this request once it has been determined that:
- You obtained the discharge through fraudulent activity
- You chose not to declare or surrender any non-exempt asset to the bankruptcy trustee
- You refused to obey orders by the court
- You failed to produce the necessary paperwork or explain a material misstatement during the audit
If the discharge is revoked, you will become liable for all discharged debts and will no longer be legally protected from collection activities.
Need an answer to ‘When does my Chapter 7 bankruptcy case end in Paducah KY?’ Call us now!
If you’re currently facing a mountain of debt, filing Chapter 7 bankruptcy can help you achieve debt relief in as little as 3 months. Our skilled bankruptcy attorneys at Farmer & Wright PLLC will carefully assess everything to find out if Chapter 7 fits your situation or if Chapter 13 would be a better option. So what are you waiting for? Contact our law firm today to get a free consultation!
Need assistance for a non-bankruptcy issue? We also give competent legal advice on Personal Injury, Disability Claims, and Immigration.