An open bankruptcy refers to the time period that exists from when you first file for bankruptcy to when all of your debt is discharged. A bankruptcy becomes closed when your receive your discharge papers from the judge.
Creditors are not allowed to make any attempts to collect their debts while you are in an open bankruptcy.
A person who is in an open bankruptcy will usually spend very little time in front of a judge. Most people filing chapter 7 bankruptcy never see a bankruptcy judge unless there is a dispute, and those filing chapter 13 usually only see a judge once to set a payment plan.
First Meeting of Creditors
This is the hearing you must attend approximately a month after you have filed for bankruptcy during which you'll be questioned about the nature of your assets, income, and debt by your creditors and the bankruptcy trustee under oath.
If everything goes according to plan, an open bankruptcy can be completed in as little as 45 days after the first meeting of creditors, according to mortgage101.com.
Once your debt has been completely cleared, you will receive discharge papers from your bankruptcy judge. In chapter 7 bankruptcy this is when all your debt has been cleared, and in chapter 13 bankruptcy this is when you have repaid all of the money owed in your repayment plan.