David M. Siegel answers in 45 seconds. Watch on YouTube · Read the transcript.
Short answer: A notice goes out to every creditor and collection has to stop. About 30 days later you attend a short meeting of creditors on Zoom, where the trustee asks yes-or-no questions for five to ten minutes to verify your petition and check whether there are assets to administer.
The first thing that happens
Notice goes out to every creditor listed, telling them a case has been filed. From that moment they must stop — no calls, no letters, no lawsuits, no garnishments, no repossessions. This is the automatic stay, and it is a federal injunction rather than a request.
For most people this is the part that changes daily life. The phone stops. The next paycheck arrives whole.
The meeting of creditors
About 30 days later comes the meeting of creditors, held on Zoom. Present are you, your attorney and the trustee. Creditors are entitled to attend and almost never do.
The trustee asks yes-or-no questions for five to ten minutes. Did you read the petition before signing. Is the information accurate. Have you listed all your assets. Nothing tricky — just yes and no, under oath.
What the trustee is actually doing
Two things: verifying that the petition is accurate, and looking for assets that could be sold to pay creditors. That second one is what people worry about, and in the overwhelming majority of Chapter 7 cases the answer is that there is nothing to administer.
Illinois exemptions protect the ordinary things — a home up to $50,000 of equity per owner, a vehicle, household goods, retirement accounts, tools of a trade. A typical case has nothing outside those categories.
Then the waiting
After the meeting, about two months pass and the discharge is entered. Roughly 110 days from filing to finish in a Chapter 7.
There is one thing to do in that window: complete the financial management course. It takes an hour or two online, and forgetting it is the most common reason a case that went perfectly ends without a discharge.
Want to know what the process would look like for you?
The consultation is free and there is no obligation. You will find out what you qualify for, which debts can be eliminated, what it costs, and what the payment plan looks like.
Wheeling: (847) 520-8100 Chicago: (773) 276-6969
Your case is handled by phone — you do not need to come into either office. Even the meeting of creditors is held on Zoom. We represent clients across the Northern District of Illinois: Cook, DuPage, Grundy, Kane, Kendall, Lake, LaSalle and Will counties.
Full transcript of the video
what happens when you file for bankruptcy well a notice goes out to all your creditors advising them that you filed and they have to stop taking certain collection actions that’s the very first thing that happens secondly you’re going to have a meeting of creditors 30 days approximately after the case is filed that’s where you will appear in front of the trustee it’s handled on zoom video right now the trustee will be present you’ll be present and the attorney that you hire will be present as well and the trustee is gonna ask yes no questions for about five to 10 minutes nothing tricky just yes no yes no and they’re trying to verify the information in your petition and to find out whether or not you have any assets that could be administered and sold to pay something towards your creditors so that’s really what happens after a Chapter 7 bankruptcy case is filed
Related questions
- How long does Chapter 7 take?
- Do I qualify for Chapter 7?
- Will filing bankruptcy stop creditor calls?
About the author. David M. Siegel has represented consumer bankruptcy clients in the Northern District of Illinois since 1991 and is the author of several books on consumer bankruptcy. The firm has offices at 790 Chaddick Drive, Wheeling, IL 60090 and 10540 S. Western Ave, Suite 202, Chicago, IL 60643, and handles cases by phone for clients throughout the Chicago area.
This article is general information about Illinois and federal bankruptcy law. It is not legal advice, and reading it does not create an attorney-client relationship. Every case turns on its own facts — speak with an attorney about yours.