How Long Does the Bankruptcy Process Take?
Many people consider bankruptcy to be a good way to get rid of mounting debt. However, there are some things you need to know about it. For example, how long does the process take? When will you be debt-free?
The process varies depending on the type of bankruptcy you choose. Here’s a look at the timelines and processes involved.
Chapter 7 Bankruptcy Process
Chapter 7 bankruptcy typically takes four to six months. A simple case in which a person has no personal property or financial assets that can be liquidated to pay off creditors can be discharged in just 90 days. But this will only happen as long as the filer has completed all the steps. However, if there are delays, such as complications or inaction from the filer, the process can drag on a bit longer.
Once Chapter 7 bankruptcy is filed, the process starts. The creditors’ meeting with the Chapter 7 trustee is 30 to 45 days later. The court then waits 60 days to see if any creditors object to your Chapter 7 bankruptcy. If not, then it takes about another 15 days to close out the case.
There is a lot of paperwork and documentation. There is also a strict schedule. Not filing all the paperwork on time or creditors disputing a discharge are examples of things that can lead to delays.
In short, how long a Chapter 7 bankruptcy takes depends on the person filing, whether it is done properly, and how complicated their financial situation is.
Chapter 13 Bankruptcy Process
Chapter 13 bankruptcy takes longer. It involves a repayment plan that can last up to five years. Once the plan is completed, the process ends.
The beginning stages go rapidly. You will be making payments on your debt within the first 30 days. Even though the court will not have approved your plan yet, you will make your first monthly payment before the confirmation hearing so that you can complete the bankruptcy case on time.
In the first 40 days, you will attend the Chapter 13 meeting of creditors, where the trustee and any creditors can ask you about your financial affairs. There is also the confirmation hearing. This is where the court reviews your proposed plan and decides to confirm or approve your repayment plan.
Your payments will be monitored throughout the process. After you complete your plan, the court grants your bankruptcy discharge.
Contact Our Florida Bankruptcy Attorney Today
Filing for bankruptcy? Make sure you know what to expect. The bankruptcy process may take months or even years, depending on the type of bankruptcy.
Bankruptcy should not be taken lightly, but Florida bankruptcy attorney Brian K. McMahon, P.A. can make the process easier. We’ll help you avoid costly mistakes. To schedule a consultation, call (561) 658-1789 or fill out the online form. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.