How long does it take to file for bankruptcy?
The process of filing bankruptcy is complicated and sometimes lengthy depending on the extent of debts. Sometimes issues may arise to lengthen the process even further, but they can typically be avoided with the right help. It is important to understand the process to put a stop to the harassing phone calls and get much needed relief.
How long does it take to file for Chapter 7 Bankruptcy
An average estimate of the time it takes to finalize this form of bankruptcy is between 90 and 110 days. It moves fairly quickly if the individual is prepared to file with all of the necessary documentation at the time of meeting with an attorney. The initial step is to have a petition prepared and signed before entering credit counseling. Check stubs from the most recent two months and the latest federal tax return are necessary documents that speed up the timeframe of filing. The court requires a detailed list of all creditors, valid debts, assets, and financial statements. Once everything is submitted, within a couple of weeks you should be called to attend a meeting of creditors to verify all of the information. Within another 60 to 90 days you should expect to receive a discharge of your debts as long as no issues arise in the waiting time.
How long does it take to file for Chapter 13 Bankruptcy
The agreement to repay a portion of outstanding debts over the next few years is more complicated, which means the process is going to take much longer to complete. A timeframe is set based on your income and ability to repay the creditors. The entire payment plan must be fulfilled before a borrower can receive a discharge of their case. Missing a payment does not automatically cause a case dismissal, but always notify the trustee so that you can prevent any negative action on your account.
Individuals that file Chapter 13 are required to have the court and creditors approve the repayment plan before the case can proceed. The plan will have to be modified until all parties agree that it is acceptable. A creditor that refuses inclusion in the bankruptcy agreement can file an adversary proceeding. It is impossible to receive a discharge until the adversary proceedings are completely resolved. If the trustee feels that the filing is in violation of the federal bankruptcy code, they may initial adversary proceedings as well.
A bankruptcy attorney is the best place to turn for advice during the process of filing. Not only is it helpful to have the insight to avoid potential delays, you will know exactly what to expect beginning the day you file bankruptcy.