So if the goal of a bankruptcy is a discharge, then the question is, when bankruptcy ends. Most people think that a bankruptcy usually end when you are discharged. But the case is not technically over at that point. The court will grant a discharge in a Chapter 7 bankruptcy case usually within about 120 days of the case being filed, but it can be longer than that is some case. You will receive a confirmation letter that proves your bankruptcy is discharge but it is not closed at that point. With a Chapter 13 bankruptcy case it takes much longer to get a discharge and then you will need to wait for the court to close the case that’s when bankruptcy ends. Most of the time the closing of the case means your case is closed for good, but it can be reopened if someone sees that you provided incorrect information or you feel that your creditors are treating you unfairly or you need to re-open the case to fix an error in the case documents. Hence this leads some to says its not over until its over.
When bankruptcy ends is a common question in my world. Finality of anything has a closure to it and we all want to put behind us the problems we have faced in the past and gain a new slate going forward. Hence the common theme of bankruptcy that you gain a “fresh start” during the process. This is the good part of bankruptcy because at some point in every case there is a resolution of the past and a chance to move on. This is the hope of the process. I know most folks reading this blog are in a bad spot finically and long for better days. Bankruptcy done the right way can certainly give you that hope of a fresh start.