In case you are new to the process of filing for bankruptcy, you may be curious to know how long it takes to complete the process. Knowing this can often help you consider the best option on whether you would prefer an emergency bankruptcy claim or the standard bankruptcy case. It is also wise to take the advice of an expert bankruptcy lawyer for the best outcome.
Too often, the longest bankruptcy cases are chapter 7 cases. Mostly, with a chapter 13 bankruptcy claim, you can end the process in under 4 months and start your repayment plan with creditors. In a chapter 7 bankruptcy situation, you could expect delays. It requires a process which takes 6 months.
There are several events in Chapter 7 that can extend a claim. However, it can be beneficial if you have a huge amount of debt and cannot repay it. Chapter 7 bankruptcy can assist in areas including unsecured debts, credit cards, personal loans, and medical bills. Certain obligations will not be erased with chapter 7 bankruptcy including child support, unpaid taxes, and student loans.
While keeping up with the chapter 7 bankruptcy process, you’ll often have to give up many of your assets. Your property that you need to maintain like home or car can be added to the exempt listing in your filing. Remaining items will be liquidated and used to repay creditors.
When you start the process of filing bankruptcy, a list of schedules will be provided with a bankruptcy court in which you will provide all of your documents and ultimately go for a creditors hearing. After 20 to 40 days of your filing process, you will be put into a meeting with your creditors, generally, after a date of a court appearance. To satisfy the conditions of bankruptcy, you may also be asked to take a financial management course. It will be completed within 60 days of meeting with your creditors. The discharge will generally be given around 60 to 90 days later.