How Long Does Bankruptcy Take?
Compared to many other areas of law, bankruptcy is a very quick and powerful process for the filers. But exactly how long does it take to file bankruptcy? Generally speaking, the Chapter 7 Bankruptcy process can be completed within four months of filing. A Chapter 13 Bankruptcy, which involves a repayment plan back to the creditors, can be confirmed in as little as three months, although the repayment plan is typically three to five years.
Before filing a bankruptcy matter, Sadek Bankruptcy Law Offices offers flexible and affordable payment plans for legal services. Generally, the payment plan is two to three months. Once you hire our bankruptcy lawyer, we field all creditor calls on behalf of our clients while they are in an affordable payment plan. It is our mutual goal to file a bankruptcy case as expeditiously as possible for all of our valued clients.
To schedule a free consultation with us, please call our office today at 215-545-0008.
How Long Does It Take for Bankruptcy to Be Discharged?
The timeframe for bankruptcy discharge varies depending on the type of bankruptcy filed. In a Chapter 7 bankruptcy, which involves liquidation of assets to pay off debts, discharge typically occurs within 3 to 6 months after filing. In a Chapter 13 bankruptcy, where a repayment plan is established, discharge usually happens after completion of the repayment plan, which can take 3 to 5 years.
The Bankruptcy Court Filing Process
Our office aims for swift and precise bankruptcy petition preparation, typically within 14 days of payment plan completion. We gather data including credit reports, pay stubs, and tax returns, ensuring thoroughness. In urgent cases like foreclosures, same-day filings are possible. Meetings with clients are conducted via Zoom, phone, or in-person for convenience. In the following sections, we outline the bankruptcy court process.
Credit Counseling
Before filing for bankruptcy, individuals are required to undergo a credit counseling course from an approved agency within 180 days before filing. This credit counseling class aims to provide financial education and assistance in exploring alternatives to bankruptcy. It is more or less a financial management course.
Following completion, a certificate is issued, which must be filed with the bankruptcy petition. This requirement ensures that individuals fully understand the implications of bankruptcy and have explored all available options before proceeding.
Automatic Stay
Immediately after filing bankruptcy, the automatic stay imputed in bankruptcy is in effect. The automatic stay is a provision of the bankruptcy that fully protects the bankruptcy filer(s) and/or their property from the commencement or continuation of collection efforts. This particular provision is one of the primary reasons that individuals and married couples alike file for bankruptcy protection. Learn more about the automatic stay provision codified in the United States Bankruptcy Code 11 U.S.C. Section 362.
Meeting of Creditors
Around 30-45 days after filing for personal bankruptcy under Chapter 13 or Chapter 7, a “341 Meeting” is scheduled. Traditionally, attendance at Bankruptcy Court was mandatory, but due to COVID-19, remote hearings via phone or Zoom have become standard. This change has been embraced as it allows filers to participate from familiar and comfortable surroundings.
Final Discharge Order
In most Chapter 7 Bankruptcy cases, a discharge is granted approximately three months after the 341 Meeting. This discharge signifies the successful conclusion of the bankruptcy, relieving filers of responsibility for included debts.
Post-discharge, credit scores typically rise by 30-100 points within the first year, accompanied by numerous credit offers. We advise against taking on new debt shortly after filing, allowing for credit score improvement and increased savings by avoiding high-interest payments.
In contrast to Chapter 7, which typically takes about four months to discharge, Chapter 13 involves a longer process lasting three to five years. This chapter includes confirmation hearings where the proposed plan’s affordability and compliance with Chapter 13 requirements are assessed.
Confirmation by the bankruptcy judge usually takes two to four months after the 341 meeting. Once confirmed, the filers adhere to the plan, repaying secured debts and a portion of unsecured debts. At the plan’s end, any remaining unpaid unsecured debts are discharged, relieving filers of further obligation.
Bankruptcy FAQs
How Long Does Chapter 7 Bankruptcy Take?
Chapter 7 bankruptcy typically takes about four to six months from the initial filing to discharge. After filing, there’s a mandatory meeting of creditors known as the 341 Meeting, usually held within 30 to 45 days. Assuming there are no complications or objections, the discharge is usually granted around three to four months after the 341 Meeting. This process offers individuals a fresh financial start by liquidating assets to pay off debts and achieve debt relief from credit card debt, medical bills, personal loans, and more.
How Long Can the Chapter 7 Bankruptcy Trustee Keep Your Case Open?
In a Chapter 7 liquidation bankruptcy, the trustee can keep a case open for several reasons. Typically, it remains open until all assets are liquidated, and creditors are paid to the fullest extent possible. This process can take several months to complete, depending on the complexity of the case and the value of the assets involved. Once the trustee has completed their duties, they will file a final report with the court, and the case will be closed shortly thereafter.
How Long Does It Take to File Bankruptcy Chapter 13?
Filing for Chapter 13 bankruptcy involves a more extended process compared to Chapter 7. Typically, it takes three to five years to complete a Chapter 13 repayment plan. After filing, there’s a meeting of creditors, followed by a confirmation hearing to approve the proposed repayment plan. Once the plan is confirmed, filers make regular payments to creditors over the designated period. Upon completion of the repayment plan, any remaining eligible debts are discharged, marking the end of the Chapter 13 bankruptcy process.
Schedule a Free Consultation With a Bankruptcy Attorney
In comparison to many other areas of law, a Chapter 7 or Chapter 13 Bankruptcy is most efficient and powerful for the filers. If you have any further questions regarding your particular debt, please contact a Pennsylvania bankruptcy attorney at Sadek Bankruptcy Law Offices at 215-545-0008 in Pennsylvania or at 856-890-9003 in New Jersey. We look forward to helping you understand the ins and outs of bankruptcy, as well as how it will affect your credit report and history.