How Long Does A Chapter 7 Bankruptcy Take In Colorado?
Wondering how long it takes to complete the Chapter 7 bankruptcy process in Colorado? Read on and check out the video above to learn more!
Starting The Chapter 7 Bankruptcy Process In Colorado
Assuming you’ve decided to hire a lawyer (remember you don’t have to have a lawyer to file bankruptcy), your first step is to schedule a free consultation with an attorney you feel comfortable with. Look for someone who has experience with clients who have been in your situation.
During an initial consultation, your prospective lawyer will ask questions about your financial situation and dig for any potential landmines. It’s important that you are completely honest with her. She can only guide you safely through the process if she has all the information she needs to give you the expert advice you’re looking for. Avoid keeping information to yourself because you didn’t think “it was a big deal”. Share it with her and let her decide if it’s important or not.
After you leave the meeting, you’ll have some homework. You’ll need to collect some information about certain financial transactions and some documents. Go ahead and start gathering paystubs, bank statements, tax returns, ID, Social Security card, collection statements, and lawsuits. Your attorney will need all of that information to prepare your petition (the paperwork that gets filed with the bankruptcy court when someone declares bankruptcy).
You’ll also have to take a short online class before you can file. That’ll take you about 90 minutes.
Filing Your Chapter 7 Bankruptcy
After your attorney prepares the petition and you meet with her to review it, she can file it. Great news! Phone calls stop. Garnishments stop. Lawsuits stop.
The next milestone is your meeting with the trustee. The bankruptcy code calls this the meeting of creditors. Take a deep breath. This meeting is not a big deal. It’s typically a five minute conversation. Your lawyer should have already gone through this conversation to prepare you for it.
The meeting with the trustee has to happen between 20 and 45 days after your case was filed. In Colorado, it usually happens about 30 days, on average.
Now, The Waiting
After your meeting with the trustee, creditors have 60 days to file objections to your bankruptcy.
Don’t be scared. Objections are extremely rare and probably happen in less than 1% of all cases that get filed. Most objections, in my experience, are related to business debt. However, if a filer ran up a bunch of credit cards right before filing, he should be prepared for an objection. Creditors don’t like it when you take on debt and then turn around and file bankruptcy.
After the objection period, the court will issue you your discharge order. That’s your golden ticket. That’s the paper that tells the world that you’re no longer legally liable for your dischargeable debt. You’ll still be on the hook for things like certain taxes, child support, spousal maintenance (alimony), and criminal fines (restitution).
About a month after you get your discharge order, the court will close your case unless you have to turn any money or personal belongings over to the bankruptcy trustee. Having to turn anything over shouldn’t come as a surprise. You and your attorney should have discussed it before your case was filed, and the trustee should have gone over it at your meeting with him.
So, that’s it. The typical Chapter 7 bankruptcy takes about 120 days from the time it gets filed to the time the court closes it. That doesn’t include the time it takes to prepare your petition. How long that takes usually depends on how long it takes you to collect the information the trustee needs.
Talk To A Denver, Colorado Chapter 7 Bankruptcy Attorney And Find Out How Long Your Bankruptcy Will Take
We offer free consultations to answer all your questions about the Chapter 7 bankruptcy process in Colorado. You’ll meet with a top-rated Denver, Colorado bankruptcy attorney, not a paralegal. The best way to schedule an appointment for a time that is convenient for you is by going to our scheduling page.