If you have filed a chapter 7 bankruptcy with a Seattle bankruptcy lawyer, you may be wondering when you will be receiving your official discharge of your debts allowing you to receive a fresh start.  A chapter 7 bankruptcy discharge and final decree issued by a bankruptcy judge do not  always come at the same time, although it is possible if a case is a no asset Chapter 7 case. A no asset case is a case in which the bankruptcy trustee does not take or sell anything of value owned by the debtor.  When a Chapter 7 bankruptcy case is filed, the debtors are asking to be released from their legal obligation to pay their debts, and in essence receive a discharge.   The debtor’s discharge and the final decree that closes the bankruptcy case are independent actions by the court that don’t always occur at the same time.

All of the property of the debtors, except what the debtor can exempt through the use of bankruptcy exemptions, becomes property of the bankruptcy estate, and is controlled by the Chapter 7 bankruptcy trustee. If all of the debtor’s property is exempt from from being taken, a final decree may be issued simultaneously with the discharge. However the debtors case may remain open for a long time while creditors receive a distribution of money if there was non-exempt property.  Your Seattle bankruptcy lawyers can best advise you as to whether your case will be an asset or no asset case at the time of filing and when you should expect to receive an official discharge of your debts.

The official discharge is usually entered within four months after filing for bankruptcy, and the debtors will be able to move forward with their life. The bankruptcy estate will remain open as long as it takes for the bankruptcy trustee to liquidate the non-exempt property, distribute the funds to creditors, and file a final report. After all of the assets are dealt with, the Final Decree is issued and the case closed.