Chapter 7 Bankruptcy Final Decree
Chapter 7 bankruptcy can help eliminate or wipe out debt obligations for
qualifying debtors. When debt is eliminated it is known as a discharge.
When this happens, many people think their case is finished. Well, not
quite. While getting debt discharged is the primary goal for most filers,
this isn't the actual end of the
bankruptcy case. The case has officially ended when a document known as the Final Decree
is entered by the court.
Many people file
Chapter 7 bankruptcy with intentions of getting debt discharged, but this doesn't end the
case. While timing varies for discharge approval, it may be somewhere from a
3 to 6 months. A Final Decree is entered to the court by the trustee. This action is
completed if the debtor used assets to satisfy creditors. This action
is important and debtors should distinguish the differences between the two.
When the Final Decree Isn't issued With the Court
If a Final Decree isn't issued or entered with the court, you could
still be liable for outstanding debt that wasn't discharged. Upon
getting close to the end of your case, you should have already completed
the financial management course that is required. This is a different
course from the credit counseling you needed to complete in order to file
your case with the court. If the financial management course is not completed
your debts may not get discharged. Talking with an experienced bankruptcy
attorney will give better insight on what to expect since each case varies.
If you are considering bankruptcy but not sure it is right thing for you
to do, you can always
contact us to set up a free consultation. We are always here to help.