A Look Into Chapter 7 Bankruptcy Timeline
Most of the people who apply for a Chapter 7 bankruptcy are not aware of the fact that this is a long and tiresome process. You must be fully conversant in the Chapter 7 bankruptcy timeline. In case you are not aware of the time line you might not able to take action in time or you might take recourse to certain steps which would have negative effect on the proceedings of your Chapter 7 bankruptcy application.
On the date of your filing the bankruptcy petition counted to to one year in past, in case your tried to hide any asset from creditors you would be in a deep trouble. This not only includes hiding but transfer of property, even attempts at destruction of the party. Your petition would be rejected and the party would be used to recover the debts. In the same period, if you made a payment to any creditor where the said creditor was also a business partner or relative, it would be held against you.
You must keep in mind that like the prior case, the repayment would be recovered from the said creditor and add it to the assets which would be earmarked to pay off your debtors.
Coming now to the period of 180 days counted in the past from the day you file your petition for Chapter 7 bankruptcy. The courts would check if you petitioned for a Chapter 7 bankruptcy in the said period. Where it was found that you withdrew the application or the court quashed your application on the grounds that you did not comply with the court orders, your petition would be quashed again. A lapse of 180 days is required in such a case. The next step is counted on 90 days in the past from the day on which you filed the application for Chapter 7 bankruptcy. The court checks your status as the resident of that state. Where the person has not been a resident of that state for a minimum of 90 days, that person is not allowed to file for a bankruptcy. Make sure that you do not just move into a state and visit the authorities with the application for bankruptcy! The authorities would then consider the period of seventy days prior to your filing of application for a Chapter 7 bankruptcy. In case you have taken any payday loan or the like, where the amount is $750 or more, you must know that the authorities are going to consider this debt as non dischargeable. As soon as you file for bankruptcy, the proceedings commence formally. The courts put an automatic stay order. In case any of your creditor tries to take any step to recover the debt where the action may be legal or otherwise, such an action is considered contraband to the law. They would be duly notified about your filing for the bankruptcy and the court would appoint a trustee to oversee the matters from here. Be advised that the US Federal law outlines the entire Chapter 7 bankruptcy timeline. The same timeline for filings is followed everywhere, be it Indiana, Illinois or Iowa.
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