Length of a Chapter 7 Bankruptcy Case

A chapter 7 bankruptcy proceeding usually takes around 4 months from the time the case is filed, to the case closing.  Note that this does not include time it takes to prepare the filing.  Preparation can range from 2 weeks or longer, depending on the complexity of the case, how quickly the documents are brought in, and other factors.

Some chapter 7 cases take longer.  This is often the case when the trustee (the person appointed to administer the property) generates money to distribute to the creditors.  This happens when property cannot be exempted, or when the trustee reverses recent transfers.  In those few cases, the trustee must file a number of reports to the court, including: accounting for where the property came from; asking to sell the property; reporting on the proceeds obtained from a sale; stating how the proceeds were distributed to the creditors; and how much the trustee charged for the services.  At each stage, creditors and the debtor have an opportunity to object to the reasonableness of the trustee's action. Those opportunities have deadlines which add up, resulting in the case being open for many months. Sometimes a case can be open for years before the property issues are resolved.

However, most chapter 7 cases are "no asset" cases - that is, there are no assets for the trustee to liquidate after the exemptions are applied.  Usually, you will know before you file whether your property can be exempted.  The best way to make this determination is to consult with a bankruptcy attorney.