How Long Does it Take to File Bankruptcy
The time it would take for you to file bankruptcy depends on which type of bankruptcy you choose to file. There are four types of bankruptcy but usually the most popular and most applicable type of bankruptcy for the average person walking in the street is a chapter 7 or a chapter 13.
Chapter 7 is known as a straight or liquidation type of bankruptcy. This means that for you to have part or all of your debts discharged, you need to give up your properties for liquidation. Liquidation is a process in which all properties will be sold. The money that is accumulated through this process is distributed or given to your creditor. Remaining debts that cannot be covered by the money derived from the liquidation are forgiven or eliminated. Chapter 13 is referred to as a reorganization or repayment plan which the debtor will propose a repayment plan to his creditors. The qualification for this is the debtor must prove that his income exceeds all of his expenses in a month and is sufficient and steady enough to pay for his debts in the allotted time period stated in the repayment plan.
How long does it take to file bankruptcy chapter 7? The answer is that it takes less time compare to a chapter 13 type of bankruptcy. When you file chapter 7 it will usually just take four to six months for your debts to be discharged. You will just need to file your petition in court, present yourself in the bankruptcy trustee meeting and a few months later your debts will be discharged, unless there are problems along the way then in will take a little longer than usual.
How long does it take to file bankruptcy chapter 13? Unlike chapter 7, filing chapter 13 takes a lot longer. This is because you need to go to a lot of process. This usually takes 36 to 60 months for several reasons like, you need to attend a credit counseling session and wait for the credit counseling agency to provide you with a repayment plan. Once you have your repayment plan, you will have to go to a meeting with a trustee that can occur one to three months after you file you bankruptcy petition. Even though you proved that you have enough income to qualify for the repayment plan, the trustee would likely demand that plan be made in 36 month.