How Long Does a Chapter 7 Bankruptcy Last in Indiana?
Preparing and Filing the Petition
- Whether or not you file bankruptcy with the help of an attorney, completing the paperwork for a Chapter 7 petition is difficult and time-consuming. If you have a lot of assets, a business or complicated finances, it could take weeks for you to prepare the petition. If you submit an incomplete, inaccurate or sloppy petition, the court may have a hard time processing it and this could lengthen the time of your case.
Section 341 Meeting
- When you file your Chapter 7 petition at your local Indiana courthouse, the bankruptcy clerk will mail you a sheet with the time and date of your Section 341 meeting. Also known as the meeting of creditors, this meeting is mandatory and is usually the only time you will have to make an appearance in your case. According to the U.S. Trustee program, your Section 341 meeting should be held 20 to 40 days after you submit your petition.
Deadline for Objections
- Whether or not creditors actually show up at your meeting of creditors, they have until 60 days after the meeting to object to specific debts in your petition. Similarly, the U.S. Bankruptcy Trustee has until 60 days after the meeting to object to any aspect of your petition. Typically, neither creditors nor the U.S. Trustee will object to a bankruptcy petition except in cases of obvious fraud or abuses of the bankruptcy system.
Caseload and Discharge
- If 60 days have passed after your meeting of creditors and there are no objections, the U.S. Bankruptcy Court will grant you a discharge. After this point, even valid objections to your case will not be heard except in highly unusual circumstances. Generally, you will not receive your discharge papers immediately after the 60-day window due to the caseload in the Indiana bankruptcy courts. The United States Courts suggest that you should generally receive your discharge 60 to 90 days after your Section 341 meeting.