How Long to Get Bankruptcy Discharge

Bankruptcy filers are usually anxious to get their discharge from the court. A bankruptcy discharge is the official court order that excuses most debts. How long does that process take? Read on to find out more.

Typical Chapter 7 Case

A typical Chapter 7 case involves eliminating unsecured debts. Here in Sacramento, this process typically takes about 90 days. The 90 days starts when the bankruptcy case is filed with the court and ends with the discharge order. Most bankruptcy cases will be administratively closed by the clerk of the court about a week after the discharge is entered.

Filing Fee Installment Cases

The Bankruptcy Court provides debtors with the opportunity to pay the $335 Chapter 7 filing fee in installments. The court gives debtors 4 months to pay off this amount. Monthly payments are generally about $86 per month.

The bankruptcy discharge will be delayed until all filing fee payments are completed. This means that the discharge will take an extra month compared with paying the filing fee at the time of filing.

Filers can always pay ahead on their filing fee installment. Fliers can also make two payments at month three instead of waiting for month four. If a prompt discharge is important, paying the filing fee at the start of the case is the best idea.

Asset Cases

A small percentage of Chapter 7 cases filed in Sacramento will be classified as an “asset case.” This means that the Chapter 7 Trustee is liquidating some of the debtor’s assets in the bankruptcy.

Asset cases do not change the discharge timeline. A bankruptcy filer in an asset case will still get their discharge around the 90 day mark. But their case will be held open until the bankruptcy estate is fully administered. This will usually take a year from filing.

Please contact my office if you are considering filing for bankruptcy in the Sacramento area. My number is (916) 333-2222.

Attorney Rick Morin