How Long Does a Bankruptcy Take?

Seal of the United States bankruptcy court. Ch...

What is the time table  for bankruptcy? – Depends on the chapter you file

How long a bankruptcy will take, from the time of filing until discharge, is one of many concerns clients have when considering whether or not to file.  Although this can depend on many circumstances, it mostly depends on which type, or chapter, file.  There are two different chapters consumer debtors mostly file under – Chapter 7 or Chapter 13.  Chapter 7 bankruptcy is known as “liquidation” because if you have property that is non-exempt, the trustee will liquidate this into money to pay your creditors.  A Chapter 13 allows a debtor to propose a repayment plan of all or part of their debts.

A successful Chapter 7 typically takes between 4 and 6 months from the time of filing till the debtor receives their bankruptcy discharge.  Once a debtor receives their discharge, unsecured debts are no longer enforceable by creditors.  However, not everyone can qualify to file a Chapter 7, in which case a Chapter 13 is an option.

Chapter 13 repayment plans last between 3 years to 5 years.  Debtors who have household incomes below their state median amount can propose a Chapter 13 Plan between 36 and 60 months.  Debtors who have household  incomes above the median amount must propose plans of 60 months, unless they pay their debts in full before that time.

Are you considering filing? Schedule a free consultation to determine if filing is the right choice for you, which chapter you should file under, determine which property is not exempt, and to answer any other questions or concerns you have about the process. Let me help you obtain your fresh start for a new tomorrow!