In Chapter 7 bankruptcy, the debtor files a petition with the court, which includes detailed financial information about his assets, debts, and income, and a list of the assets claimed as exempt.  The papers filed with the court are executed under penalty of perjury. The  court process usually takes about 3-4 months.

The Role of the  Chapter 7 Trustee

• Review the bankruptcy filing
• Conduct the meeting of creditors
• Review the debtor’s eligibility for a discharge
• Liquidate (sell) any non-exempt assets
• Distribute the proceeds to creditors 

Meeting of Creditors

     The debtor attends a meeting of creditors which is usually held about 1 month after the filing. The debtor is put under oath, and the creditors have the right to ask the debtor about the debtor’s assets and liabilities.. In most instances, the meetings are quite brief, and often limited to the debtor simply confirming that the bankruptsy papers contain a true and accurate listing of all of his assets and debts. If complications arise, such as litigation with a creditor or the trustee, the debtor may have to attend a court hearing or additional examinations, and he will receive such notice from the court or his attorney.

Discharge Notice

     If there are no objections to the debtor’s discharge, then the debtor receives a written notice from the court, stating that he has been discharged of all of his dischargeable debts.

Credit Reports

     The fact that a debtor has filed bankruptcy can appear on credit reports for 10 years. If the debtor was delinquent in his bill payments, then he may have already had bad credit. If the debtor receives a discharge of his debts, then he will often be in a good position to pay his current bills, and may be able to get new credit. A debtor is entitled to receive a discharge in bankruptcy once every 6 years.

Contacting Us

     For an appointment in regards to Chapter 7 in the state of California, the law office of Henry Rendler can be contacted at bankruptcy@rendlerlaw.com or at 408.293.5112.