Chapter 7 bankruptcy is a more drastic form of bankruptcy available to individuals. Unlike chapter 13 bankruptcy which creates a repayment plan in order to manage debts, chapter 7 bankruptcy consists of appointing a bankruptcy trustee to liquidate assets in order to settle debts.
How long it can take to file chapter 7 bankruptcy depends on how quickly the petitioner can assemble the necessary documentation. However, most bankruptcy courts will assign a two week deadline to file these documents with the court.
Typically there are two factors in the cost of chapter 7 bankruptcy: attorneys fees and filing costs. The filing fee for chapter 7 bankruptcy is $338. Attorneys fees for chapter 7 bankruptcy can range from a few hundred to a few thousand depending on the length and complexity of the case.
Once chapter 7 bankruptcy has been filed, the appointed trustee will assess and sell all nonexempt assets in order to settle debts owed to creditors. There are some assets that may be protected from liquidation but most property held by the debtor will be liquidated. This has led many people to consider chapter 7 as the last resort.
