Paperwork

• There is a great deal of paperwork that goes into a bankruptcy filing, and a debtor may need to retain counsel. Debtors must have a complete list of their assets, liabilities, exempt property, current income and creditors when they file. In addition, debtors must give a statement of financial affairs and must determine what they will do with secured property, such as a home or a car. Once the paperwork is filed, the clerk of the court will inform the debtor's creditors via mail.
  
  

Meeting of Creditors

• Also called a 341 hearing, this occurs about a month after filing. At this meeting, the debtor and the attorney meet with the U.S. Bankruptcy trustee. The trustee's job is to ensure that the debtor meets the requirements to file a Chapter 7 case. The trustee usually questions the debtor about his debts and his ability to pay. At this time, any of the debtor's creditors can come to the meeting. The debtor is required to attend the meeting and is required to answer all questions under oath.
  
  

Objections to Exemptions

• Creditors have 30 days from your hearing to file objections to your exempt property. Every state has property exemptions, which simply means you are allowed to keep this property after you file. Generally speaking you can keep your house (as long as you are current on payments and want to reaffirm the debt with your lender), one car and most household goods. Once the deadline passes, the creditor cannot object. The trustee may object to any of your exempt property at any time until the case is discharged.
  
  

Proof of Claim

• Creditors have 90 days to file a proof of claim with the trustee once you've filed. This is the creditor's way of ensuring that their debt is honored during the liquidation process. The trustee will liquidate any of your assets that are not exempt and pass that money along to your creditors. Without a proof of claim, your creditors cannot get their money.
  
  

Objection to Discharge

• Creditors have 60 days from the 341 hearing to object to the debtor's general discharge. Creditors can also file objections to discharge of the following debts at any time during the process: taxes, customs duties, unlisted debt, alimony, child support, government fines, penalties or a government issues student loan. Creditors must file objections within 60 days of the 341 hearing regarding discharge of a specific debt if they believe the debtor created the debt close to filing, committed fraud during the process or committed malicious injury to someone else or their property.
  
  

Discharge

• If there are no bumps in the road, and no creditors object, then the discharge of a Chapter 7 bankruptcy can occur roughly 90 days after filing, according to the U.S. Bankruptcy Code. At that time, the debtor is no longer legally responsible for the debts discharged in the bankruptcy.