How Long Does Bankruptcy Take

Many responsible people are having to file for bankruptcy  due to unavoidable  circumstances like  job loss , and lowered pay, and there is little in the way of alternative funding . The biggest question we ask when we are pinched to the point where  we must start thinking about  bankruptcy is; how long will a bankruptcy take  to  finish  ?The response to that question can depend on a few  things , like which type of bankruptcy you  need   to file. Your bankruptcy attorney will give advice here, but there are two standard types of bankruptcy; Chapter 7 and Chapter 13. Chapter 7 is more difficult to get sanctioned, as it is a straight settlement of assets with stringent regulations and criteria.

Most  persons filing for bankruptcy will be forced  to file Chapter 13, after filing a 2 page petition and paying a fee to file. Your first step will be the actual filing, followed immediately by the petition to your creditors to stop collecting.  Those vultures   may no longer demand any  payment from you for outstanding debts owed,  and they can’t try to   take you to court or repossess any property . You will  file  your case   , with the names and address of all of your creditors with the court, inside several days of filing for Chapter 13 bankruptcy.

One  week after you submit your  paperwork   , you will be supplying  the court certification of your assets,  pay rate, expenses , as well as your  financial plan for the re-organization of  debts  under Chapter 13, and proof that you  will be   able to abide to your  plan. Next, you will meet with  the  trustee to finalize your financial plan . This meeting will be anywhere from one  to three months after your initial  bankruptcy   filing, and will  take  approximately   fifteen  minutes. The meeting will most likely consist of you swearing to tell the truth, and then responding to  questions that will be recorded. Your creditors will  have the opportunity  to ask you about your  financial plan.  Creditors hardly ever  show up for these meetings. The  bankruptcy  plan begins after this meeting.

On  the 60th day  after the creditors meeting, there is a deadline for creditors  to file lawsuits  that dispute  the fairness of being able  to discharge a debt  you listed  .For  Chapter 13 bankruptcy, the length of your repayment plan  will depend on how much  you owe, and how much money you  bring in each   month. Bankruptcy laws  require that all plans take  anywhere from 36 to 60  months, even if you are able to pay off your debts before the minimum time of 36 months .Once you complete your  bankruptcy case  , you can  expect it to stay on your credit record  for up to  10 years.

Take this into consideration before filing, especially if you want to purchase a home or car in the near future , or are looking for a new job. Potential creditors and employers  often  do not like to see a bankruptcy during a background check . If a bankruptcy filing is inevitable, take the time to explain your position to a potential employer. When a  bankruptcy filing   looms  , be inclined(p) to hired the best bankruptcy attorney and then gather plenty of documentation, a good long term repayment plan, and  plenty of patience.

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