A Chapter 7 Bankruptcy in Colorado Lasts for how Long?
In Denver and most parts of Colorado, a standard chapter 7 bankruptcy matter will last for 4-5 months from the filing of the petition to discharge.
Discharge should not be confused with the case closing. A bankruptcy discharge is an order entered by a Colorado Bankruptcy Court judge which prevents most unsecured creditors from suing the debtor for any personal liability associated with a debt. As per the Bankruptcy Code, the discharge can enter no earlier than 60 days after the 341 Meeting of Creditors – this same 60 days is how long the unsecured creditors have to object to the discharge.
The bankruptcy discharge order always is entered before the judge orders the case closed. If the case is a “no asset” chapter 7, meaning that the debtor has no non-exempt property for the bankruptcy trustee to distribute to unsecured creditors, the order closing the case will likely be entered much sooner, perhaps at the same time as the discharge order.
On the other hand, a chapter 7 case can remain open much longer than the 60 days after the 341 Meeting of Creditors if some of the debtor’s property is non-exempt and thus can be distributed to creditors by the trustee or if one or more creditors object to discharge.