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.