Is bankruptcy different today? Sounds wrong, but studies show the easier it is to file bankruptcy, the more people will take risks to start a new business.
The actual cause of the increase in bankruptcy filings used by the credit industry lobby to get the laws changed, was, the increase in credit extended by those same companies. Filings per million dollars of consumer credit varied little, about 4%, in the twenty years or so before the law was changed. The more they lend, the more people who go broke.
The savings promised to the rest of us from lower credit card interest rates? Yet to materialize. Of course, the bankruptcy that would be best for the economy would be AIG and all the other bailout recipients. But no, the politicians dole out our tax money to the big boys, and leave the Bankruptcy Law alone, so far.
Nowadays, a complete a simple, no asset Chapter 7 bankruptcy case will usually go on for about 4 to 6 months, but the case could be open a lot longer. When filed, the Court sends out a Notice of Filing to all parties in the case, notifying everyone of the filing and of the deadlines involved. The notice contains a deadline to file a complaint to determine discharge ability of certain debts. The debtor and their bankruptcy attorney will be required to attend the 341 meeting or meeting of the creditors. At this time, if any creditors have a complaint or questions for the debtor, this would be the time to do it. The bankruptcy trustee will also ask questions regarding the bankruptcy petition and if everything looks good the individual filing will be done. If anything is missing, the trustee will allow time for the debtor to amend the bankruptcy petition or gather necessary documents that are also missing.
The case doesn't end completely until the Final Decree is entered, and that won't be done until a Trustee is sure that he/she has dealt with all the assets of the Bankruptcy estate. If the case is a no asset case and the Trustee has reported that they have no interest in the case, the bankruptcy discharge and Final Decree may be issued at the same time, resulting in a bankruptcy discharge and a closed case at the same time. It's very important to make sure you are represented by an experienced bankruptcy attorney so the case will finish smoothly with no landmines.