10 Steps for a Typical Chapter 7 Bankruptcy Case

Step 1: Initial Consultation with Luh & Associates
Goal: Determine if Chapter 7 is appropriate.
Discuss:
- Income, assets, debts, recent financial transactions.
- Non-dischargeable debts (e.g., student loans, taxes, support obligations).
- Alternatives (e.g., debt settlement, Chapter 13).
Decision Point: If eligible and beneficial, proceed with preparation.
Step 2: Gather Financial Documents
Documents needed include:
- Income documentation: Pay stubs, tax returns (usually last 2 years).
- Asset documentation: Vehicle titles, real estate deeds, bank/investment statements.
- Debt documentation: Credit card bills, loan statements, collection notices.
- Monthly expenses: Rent, utilities, food, transportation, etc.
Step 3: Credit Counseling Course – Pre-Filing
Mandatory requirement. Must be completed within 180 days before filing.
Typically completed online or by phone.
You’ll receive a certificate of completion to file with the petition.
Step 4: Prepare and File the Bankruptcy Petition
Luh & Associates prepares:
- Voluntary Petition (Form 101)
- Schedules (A-J): List all property, debts, income, expenses.
- Statement of Financial Affairs
- Means Test (Forms 122A-1, 122A-2)
Filing fee: ~$338
Automatic Stay: Goes into effect upon filing — creditors must stop collection.
Step 5: Bankruptcy Trustee Assigned
A Chapter 7 trustee is appointed to review your case.
Trustee’s role: Ensure accuracy of disclosures, identify nonexempt assets (if any).
Step 6: 341 Meeting of Creditors (Usually 30–45 Days After Filing)
You must attend — In Nevada, held by phone or Zoom.
Trustee asks questions about:
- Your petition
- Assets, income, recent transfers or payments
Creditors can attend but usually don’t.
Step 7: Trustee Review and Asset Determination
Trustee may:
- Declare your case “no-asset” (most common).
- Administer nonexempt assets for liquidation (less common).
If any property is sold, proceeds go to pay unsecured creditors.
Step 8: Debtor Education Course (Post-Filing)
File the certificate of completion (Form 423) within 60 days after 341 meeting.
Must complete a second financial management course (debtor education).
Step 9: Discharge of Debts (~60–90 Days After 341 Meeting)
Debtor is no longer legally liable for discharged debts.
Court enters a discharge order wiping out most unsecured debts (e.g., credit cards, medical bills).
Step 10: Case Closed
If assets are administered: Trustee completes distribution to creditors, then case is closed.
If no assets to administer: Closed shortly after discharge.