Time

Chapter 7

Non-Exempt Property Converted to Exempt

The value of non-exempt property that Debtor contributed to the homestead, coop or burial plot, in order to hinder, delay, or defraud a creditor shall not be protected as exempt.§522(o)  Trustee may avoid transfers Debtor made to trust in order to hinder, delay, or defraud a creditor, in anticipation of money judgment or criminal fine. §549(e)

Prior Bankruptcy Prevents Filing of Chapter 7

A Debtor is prohibited from receiving a discharge under Chapter 7 if they received a discharge in a bankruptcy which was filed within the last 8 years.  A discharge may still be granted if the prior bankruptcy discharge was Chapter 12 or 13, within last 6 years and paid 100% of allowed unsecured claims, or paid at least 70% allowed unsecured claims and the plan was proposed in good faith and was the their best effort. 11 U.S.C. § 727(a)(8 & 9)

Homestead Limitation (but see McNabb)

Debtor may not exempt any equity in homestead over $125,000 if acquired 3 years, 4 months prior to filing (does not apply to farmers residence). Time limit does to apply if debtor transferred equity from prior residence, located in same state.  §522(p)

Debtor's Domicile Determines Exemptions

522(b)(3) Debtor's exemptions determined by the State of residence for last 2 years before filing.  If Debtor did not live in a single state for 2 years, then exemptions determined by where debtor domiciled the 6 months preceding the last 2 years before filing.  If state law does not permit a non-resident to use exemptions, then Debtor may use federal exemptions

Transfer, sale, concealment or destruction of property may prevent discharge in Chapter 7

The court may deny the Debtor(s) a discharge of all debt if they attempted to hinder, delay or defraud a creditor when they transferred, removed, destroyed, mutilated, or concealed property within one year prior to the filing of their Chapter 7 petition. 11 U.S.C. § 727(a)(2).  The trustee may recover the property from the person who received it if the transfer was made within 2 years of filing, for less than fair market value; or debtor intended to hinder, delay or defraud a creditor. The trustee may also recover any asset the debtor transferred into a trust within 10 years before filing.  11 U.S.C. §548(a)

Payment to Relative or Insider is a Preference

A total of $600 (primarily consumer debts) or $5,000 (not primarily consumer debts) or more in money or property which is paid to a creditor who is an insider, such as a relative or certain business associate, within a year prior to filing may be a preference. The Trustee may recover preferences and divide the money among all creditors. 11 U.S.C. §§ 547(b)(4)(B), 547(c)(8), 101(31)

Dismissal of prior bankruptcy prevents filing Chapter 7.

Debtor(s) may not file any bankruptcy if they filed a previous bankruptcy which was dismissed in the preceding 180 days either (1) on the court's order because of their willful failure to obey orders of the court or to appear in court when required; or (2) at the Debtor(s)' request after the filing of a request for relief from the automatic stay. 11 U.S.C. § 109(g)

Minimum Residency Requirement

Debtor(s) must be a resident in the state in which they are filing for at least 91 of the last 180 days before filing.  If they have not resided in the state that long, they can only file in the state where they have resided, or which has been their principal place of business or which has been the location of their principal assets for the majority of the last 180 days.  28 USC §1408

Payment to Creditor is a Preference

A total of $600 (primarily consumer debts) or $5,000 (not primarily consumer debts) or more in money or property which is paid to a creditor within 90 days prior to filing may be a preference, unless incurred the ordinary course of business or financial affairs of the debtor. The Trustee may recover preferences and divide the money among all creditors. 11 U.S.C. §§ 547(b)(4)(B), 547(c)(8)(9), 101(31)

Creditor's Addresses and Account Numbers

The address and account numbers contained in any communications received from a creditor within 90 days prior to filing must be used on the Debtors schedules.  §342(c)(2)(A)  Failure to use the proper address may allow the creditor to seize your assets.

Debt presumed to be non-dischargeable

Debt of $750 for cash advances or $500 for "luxury goods or services - not necessary for support of family" incurred within 70 or 90 days, respectively, before the Bankruptcy is filed is presumed to be non-dischargeable and may need to be a paid after the bankruptcy is completed. 11 U.S.C. § 523(a)(2).  §523 denies a discharge for a debt which is domestic support obligations, certain taxes, not listed on schedule, government fines or penalties, any loan for educational purposes, HOA dues, debt owed to pension, plus more.  Bankruptcy Rule 4007(c); see also 11 USC § 523

Credit Counseling Course

Must be taken within 180 days PRIOR to filing the bankruptcy petition.  A certificate of completion must be filed with the Court.  Course providers must be approved by the US Trustee's Office 11 U.S.C .§109 & §111

Commencement of Case

A voluntary bankruptcy is commenced when the Debtor(s) file a petition with the Bankruptcy Court requesting protection from their creditors under Chapter 7.  A husband and wife may file one petition together and commence a joint case.  A case number will be assigned - use it on all filings.

Must also file verified statement of Social Security number and the Credit Counseling Certificate. G.O. 94(F)(7)

The filing of the petition creates a stay under 11 U.S.C. §362 prohibiting all collection actions. 11 U.S.C. §§ 301, 302, 101(42) - unless the Debtor has filed a prior bankruptcy in the last 12 months.  Stay good for only 30 days if filed one prior case in last 12 months. §362(c)(3)(A). No stay at all if 2 or more cases in last 12 months. §362(c)(4)(A)(i)  A dismissed case is a filed case.  No excuse for failure to understand the requirements.  A motion to extend the Stay must be filed within 30 days of the Petition. §362(c)(3)(B) & (4)(B)

No automatic Stay if: 1) FED judgment involving residential property  entered pre-petition §362((b)(22); 2) if prior case in last 12 months stay terminates after 30 days as to debtor, but not estate §362(c)(3)(A)

Almost Everything you Own Belongs to the Bankruptcy Estate, except:

Up to one million in IRAs, under IRC 408 or 408A, plus earnings.  §522(n).  Up to $5,000 placed in Educational IRA or tuition credit between 1-2 years before filing - see §541(b)(5)&(6).  Also exempt are contributions to ERISA, deferred comp403(b) annuity, power exercised solely for third party, expired lease of nonresidential real property and pawned property and a few other items,

Statement of Current Monthly Income & The Means Test

A debtor, who is an individual with primarily consumer debts, must complete and file a Statement of current monthly income and expense information. This is not the same form as used in Chapter 13 cases.

Allowed monthly expenses: set forth under the National Standards and Local Standards for Housing and Utilities and Local Transportation Expenses and debtor's actual monthly expenses specified as Other Necessary Expenses.  Debtor can include charitable contributions, health, disability insurance and health savings expenses 707(b)(2)(A)(ii)(I), plus actual expenses for care and support of elderly, ill or disabled; plus actual education expenses up to $1,500/year/child - explain why not accounted for in above expense; include actual home energy expenses over Local Standards, plus all secured claims and arrears (chapter 13) divided by 60, plus all domestic support, divided by 60.  § 707.  Debtor's expenses may include actual administrative expenses for chapter 13. § 707(B)(2)(a)(ii)(III); G.O. 94(F)(4)

The debtor(s) shall file a statement if the individual debt is not required to file the Statement of Current Monthly Income and Means Test because debts are not primarily consumer.  GO 94

If there is a trustee's sale or foreclosure pending - immediately record a Notice of Bankruptcy in the county where the real property is located.

Domestic Support Obligations

If the Debtor owes domestic support obligations (child support or alimony), then the Trustee is required to provide to the person owed money that assistance is available with the State child support enforcement agency.  At time of discharge the Trustee is required to give the last recent known address of the debtor, debtor's employ.  704(c)(1)

Deadline to File Master Mailing Matrix

The master mailing matrix must be filed no later than 5 calendar days after the Petition.  Failure to do so will mean that your case will be automatically dismissed

Deadline to File Statement of Social Security Number

The Statement of Social Security Number must be filed no later than 5 calendar days after the Petition.  Failure to do so may cause dismissal of case.  GO 94, Local Rule 1007-1

5 Days After Filing Petition

Deadline to File Credit Counseling Certificate

The Credit Counseling Certificate or certificate of exigent circumstances must be filed no later than 5 calendar days after the Petition.  Failure to do so WILL cause dismissal of case.  GO 94, §109(h)

Presumption of Abuse Under  707(b)

For debtors with primarily consumer debts, the clerk shall give a notice of presumption of abuse to all Creditors within 10 days after filing. Interim Rule 5008

Conflict

Deadline to File Schedules and Financial Statement

Within 15 days after filing the Chapter 7 petition, the Debtor(s)  must file schedules listing all assets and liabilities, current income and expenditures, executory contracts and unexpired leases, and a statement of their financial affairs §707(a)(3); but §521(i)(1) provides for automatic dismissal if not filed within 45 days; BUT G.O. 94 requires an actual order of dismissal be entered first.  § 707(a)(3), Bankruptcy Rule 1007(c); see also 11 U.S.C. § 521

Personal property, with a secured lien, shall be valued at replacement cost for property in same condition, without deducting costs of sale.  All other personal property shall be valued at the price a merchant would charge for similar property of same age and condition.  506(a)(2)

Conflict

Payment Advices (pay stubs), or other evidence of payment received

Within 15 days after filing the Chapter 7 petition the Debtor must file copies of all payments received 60 days before filing, or a statement of monthly net income and a statement of increases in come or expenditures for next year §521(a)(1) & §707(a)(3); but §521(i)(1) provides for automatic dismissal if not filed within 45 days  (Make sure to redact all but last 4 digits of social security number.)  G.O. 94

Deadline to File Statement of Current Monthly Income and Means Test

Required by Clerk's Notice to Debtors and Interim BK Rule 1007(c)

Deadline to File Certificate of Debtor's Receipt of §342(b) Notice

Pursuant to §521(a)(B)(iii)(I), the Attorney or unrepresented debtor must file certificate that Debtor, with primarily consumer debts, received §342(b) notice.   707(a)(3)

Court Mails Notice of Bankruptcy

Approximately 2-3 weeks after the Debtor(s)'  case is filed, the court mails a Notice of Chapter 7 Bankruptcy, Case, Meeting of Creditors, & Deadlines to the Debtor(s) and to the creditors listed in schedules filed by the Debtor(s).  The notice contains meeting date, deadlines for objections to discharge and for filing Proofs of Claims.  The meeting date and other information can be obtained by calling the court's Automated Information Line:
Phoenix Office 602-682-4000
Tucson Division 520-620-7500
Yuma Division 928-783-2288

Amendments to Schedules, etal

If a creditor is added to the schedules after the Petition is filed, the Debtor shall include the full social security number on the creditor's notice, but only the last 4 digits on the notice filed with the court. §342(c)(1)

Deadline to file Statement of Intention

Within 30 days after filing the Chapter 7 petition (or before the Creditor's meeting if that is earlier), the Debtor(s) must file a Statement of Intention indicating whether they will be surrendering or keeping personal property secured by consumer debt.  If the Debtor(s) are keeping secured property, they will need to indicate whether they intend to:  (1) reaffirm the debt and continue to make the payments remaining obligated for the balance of the debt, or (2) redeem the property by immediately paying the value of the property and receive a discharge for the balance of the debt. §362(h)(1)

A copy of the Statement of Intention must be served on the trustee and the creditors named in the statement on or before the filing of the statement. 11 U.S.C. § 521; Bankruptcy Rule 1007(c)

Deadline to file Statement of Intention As to Unexpired Lease

Within 30 days after filing the Chapter 7 petition (or before the Creditor's meeting if that is earlier), the Debtor(s) must file a Statement of Intention indicating whether they will be surrendering or keeping personal property subject to an unexpired lease, otherwise stay terminates §362(h)(1) & §521(a)(2)(A)

AUTOMATIC DISMISSAL

Pursuant to §521(i)(1) Debtor's case shall be automatically dismissed is they fail to to any of the following: file list of creditor, schedule of assets and liabilities, current income and expenses, statement of financial affairs, pay stubs, statement of monthly net income statement of increased income or expenses for next 12 months, and a certificate that the Debtor received the §342 notice.  §521(a)(1).  Court may extend, if request is made within 45 day deadline. §521(i)(3)  But see 15 day deadline in 707(a)(3).

Federal Tax Return to Creditor

The Debtor must provide a creditor a copy of the tax return, or transcript, for the last year a return was actually filed, if that request is made at least 15 days before the creditors meeting,   §521(e)(12)(A)(i), Interim BK Rule 4002   Make sure to remove confidential tax information, such as children's names and social security numbers.

Federal Tax Return to Trustee

At least 7 days before the Creditor's Meeting the Trustee must be provided a copy of the Federal income tax return, or transcript for the last year a return was actually filed.  §521(e)(12)(A)(i), Interim BK Rule 4002  Do not send to the Court.  (Clerk's Notice to Debtors)  The Court shall dismiss the case if the debtor fails to perform.  The Debtor shall provide the same to any creditor who requests.

§ 341 Meeting - "Creditor's Meeting"

§341 of the Bankruptcy code requires the Trustee to preside at a meeting of creditors within a "reasonable time."  This meeting is usually held between 20 and 40 days after Bankruptcy is filed. Interim BK Rule 2003.   Both our office and the court will provide our debtor clients with the date, time and location of this meeting.

The Debtor(s) in the Bankruptcy case are required to attend this meeting and testify under oath that the information filed with the Court is accurate.  Most creditors do not come to the meeting.  The failure of creditors to attend the meeting does not effect their right to challenge the discharge in a Chapter 7.  If the Debtor(s) do not attend, their case will be dismissed. USC §§ 341 & 343

Deadline for Trustee to file 707(b) Statement

If the trustee determines that a Debtor's, who is an individual, income, multiplied by 12, is greater than median family income then they must file a statement of presumed abuse under §707(b)  The court shall provide copy of Trustee's statement to all creditors.  Within 30 days of filing statement the Trustee shall file motion to dismiss or convert, or a statement why dismissal or conversion is not appropriate.  Abuse under § 707(b) would apply if the debtor's current monthly income, multiplied by 12, is greater than median family income. §704(b)  Also, abuse if debtor's current monthly income, minus allowed monthly expenses (see Means Test definition, above), times 60, is less than the lesser of either 25% of the debtor's non-priority unsecured claims (such as credit cards and medical), or $6,000, whichever is greater; or $10,000. 

Deadline for creditors or Trustee to object to claim of exempt property

Creditors and the Trustee have until 30 days after the conclusion of the creditor's meeting, or the filing of any amendment, to object to the property the Debtor(s) has claimed as exempt in Schedule C.  Most creditor's meetings are concluded on the same day they are set, occasionally the meeting is continued to a later date, which will extend the time that creditors have to object. §522(l)   Objections based on 522(q) are extended to the close of the case.  Interim Bankruptcy Rule 4003

Conflict

Deadline to perform under Statement of Intention

As to personal property with an allowed  purchase price secured claim:  Within 45 days after the Creditor's meeting the debtor must enter into agreement with creditor or redeem the property.  §521(a)(6) The creditor must provide the debtor  complicated disclosures before entering into reaffirmation agreement. §524(k)  The agreement must be approved by the court, if Debtor's attorney does not sign.  The debt cannot impose an undue hardship on debtor or debtor's dependants.  The debtor may rescind the agreement within 60 days. §521(c)(4)  But §521(a)(2)(B) sets 30 days after creditor's meeting as deadline to perform.

Personal Financial Management Course

Certificate must be filed with the Court within 45 days after creditors meeting.  Course providers must be approved by the US Trustee's Office 11 U.S.C .§111 and §727(a)(11), Interim BK Rules 1007(c)

Debtor must file a record of interest in an education individual retirement account or qualified State tuition program §521(c)

Deadline for objection to discharge of a particular debt under §523

Creditors have until 60 days after the first date set for creditor's meeting under § 341 to file a complaint under § 523(a)(2), (4) & (6).  523 allows creditors to object to the discharge of debts which were obtained by false pretenses, a false representation, or actual fraud; debt from fraud or defalcation while acting in a fiduciary capacity, embezzlement or larceny; and debt for willful and malicious injury §523(c)(1).

The most common objection to discharge of a debt is based on § 523(a)(2).  This section presumes that charges totaling $750 for cash advances or $500 for "luxury goods or services - not necessary for support of family" incurred within 70 or 90 days, respectively, before the case is commenced are not discharged. This section denies a discharge for a debt which is domestic support obligations, certain taxes, not listed on schedule, government fines or penalties, any loan for educational purposes, HOA dues, debt owed to pension, plus more.  Bankruptcy Rule 4007(c); see also 11 USC § 523

Deadline for objection to discharge of all debt under §727(a)

Creditors have until 60 days after the first date set for creditor's meeting under § 341 to file a complaint under §727(a).  §727(a) allows object to the discharge of all debts because of misconduct including transfer, destruction or concealment of property; concealment, destruction, falsification or failure to keep financial records; making false statements; withholding information; failing to explain losses; failure to respond to material questions; having received a discharge in a prior case filed within the last 6 years. Bankruptcy Rule 4004(a); see also 11 USC § 727(a)

Conflict

Deadline for U.S. Trustee, any Party in Interest or Court to move to dismiss case for substantial abuse under §707(b)

The U.S. Trustee or the court have 60 days after the first date set for creditor's meeting under § 341, to move to dismiss a case in which debts are primarily consumer debts if it finds that granting the debtor a discharge would be an abuse of the provisions of Chapter 7.  Abuse is defined as having sufficient income to pay more than 25%, or $6,000, of your unsecured debt over the next 36 months. Bankruptcy Rule 1017(e); see also 11 USC § 707(b), Interim BK Rule 1017.

Conflict 707(b)(1) provides that "any party in interest" may bring this action, but Rule 1017(e) does not.

OLD LAW??

Deadline to file all due but unfiled tax returns

For cases filed in the District of Arizona, the Debtor(s) must file all due but unfiled tax returns within 60 days after the first date set for the §341 - Creditor's meeting. Do not file for an extension without the Trustee's permission.  If you fail to file all the returns the Trustee will lodge an order dismissing your bankruptcy.  During the pendency of your bankruptcy send all your returns to: Internal Revenue Service, Insolvency Centralization, PO Box 21125, Philadelphia PA 19114. 

Arizona Department of Revenue, Bankruptcy Unit, 7^th Floor, 1600 W. Monroe, Phoenix, AZ  85007.  If it is important that you file immediately you can also hand deliver the returns to 210 East Earll, Phoenix.  Take two copies of the executed return with you and have the clerk date stamp it - send these to the Trustee and your Attorney.

All refunds due you on filing your chapter 7 must be surrendered to the Trustee.

Deadline for non-government creditor to file its Proof of Claim

A creditor, other than a governmental unit, must file its Proof of Claim within 90 days after the after the first date set for creditor's meeting under § 341 in order to share in payments from the estate. Bankruptcy Rule 3002(c)

Discharge entered in Chapter 7 case

If the chapter 7 case is filed by individuals, and the Personal Financial Management Certificate has been filed with the Court, and has filed requested tax documents (521(f), or any other requirements, then the Court will enter Discharge.  The discharge is not absolute or final. The trustee can ask that the discharge be set aside if the Debtors do not turn over non-exempt property, and for other violations of the Debtor's duties.  Bankruptcy Rule 4004(c)(1), 4004(a), 1017(e) and Interim BK Rule 4004(c)(H)  If the Debtors fails to timely perform The Clerk can close the file, without entering the discharge.  Interim BK Rule 4006.

Deadline for governmental unit to file Proof of Claim

A governmental unit, such as the Internal Revenue Service, must file its Proof of Claim within the commencement of the case in order to share in payments from the estate.  Bankruptcy Rule 3002(c)(1)