and the actual processing time by the Court.
A bankruptcy case involves a lot of paperwork that must be carefully prepared so the case proceeds smoothly through the courts. At Mile High Bankruptcy, it takes an average of two to six weeks from the time a client walks in the door for the case to be properly prepared, reviewed, and filed. Sometimes it can be shorter and sometimes longer based on the issues of the case and the organization of the client.
A number of factors go into this variable. Some cases such as garnishment cases or some income variable cases must be filed quicker. Sometimes it takes longer depending on what needs to be done to get all the information necessary for the filing.
For example, I once had a case for a schoolteacher who came to the first meeting with every necessary document in a three ring binder with plastic tabs, ready to go (most clients do not need to bring any documents to the first meeting). Another lady came to me after her house burned down and she had no documents (not even a driver’s license), and we had to help her reconstruct all her materials from scratch. Both cases were successful and processed smoothly, but the lady with the burned house case took a bit longer to prepare.
A word here about creditor protection. Even though only the filing of the paperwork absolutely stops creditor activity, we can protect clients and offer relief from creditor harassment as soon as we are hired and are in the case preparation stage. We instruct clients to refer all creditors to us IMMEDIATELY after hiring me. Answer the phone and send the creditors to me!
Most all of the creditors know me and generally don’t want to continue to take action against you if a bankruptcy is coming (they don’t want to waste the time and money proceeding against you). If a lawsuit has already been filed, only the filing will actually stop it, but in most cases the referral to our office calms the creditors down and they stop harassing you and wait for the filing.
After the case is filed, it generally takes about ninety days from filing to discharge. The discharge is the court order cancelling your debts. This process is very systematic and generally very smooth. Your fresh start happens quickly!! Usually right after filing, even if the case is still pending.
Sometimes the cases take longer than ninety days to completely close, even after the discharge order has entered if there are assets being distributed by the trustee, a situation that happens in a small fraction of cases.
This blog outlines the basic time line for filing a Chapter 7 Bankruptcy. I would be glad to explain this to you in detail after hearing the factors in your case. Call me, Peter Milwid, at 303-831-0733 with any questions you might have.
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