Every year, countless Americans find themselves, through no fault of their own, facing bankruptcy. Many have no idea how long the bankruptcy process can take. The length of time from filing bankruptcy to having your debts discharged can vary greatly, depending on which type of bankruptcy is being filed, and how quickly you can gather together all the required financial information. Whether you are filing for Chapter 7 or Chapter 13 bankruptcy will make a significant difference in how long the bankruptcy process takes.
If you have kept financial records like bank statements, debt statements, income taxes, and dividend disclosures, you are already ahead of the game. Chapter 7 bankruptcy filing requires copies of these types of records. If you’ve not kept meticulous records, DON’T WORRY. All the necessary information can be tracked down, but it will just take a little more time. Sirody and Associates will help by tracking down businesses that have purchased your debt. If this information has been gathered before the filing, the bankruptcy can go through without any further complications.
Chapter 7 Bankruptcy Processing
Chapter 7 bankruptcy is for individuals who have few major assets (like a home) to protect. A Sirody and Associates bankruptcy lawyer can help file all the required papers. Gathering paperwork is the most time-consuming part of the process. If your debt accounts have been sold to collection agencies, it can be a challenge to track down exactly who you owe money to. Sirody and Associates will help.
Once the bankruptcy papers are filed with the courts, you’ll wait one to two months, which is about how long it takes to set a court date at which you will appear. On that date, if all your financial papers are in order, the court will then declare the bankruptcy. At this point, all your debts will be discharged with the exception of student loans and a few other exceptions. Also, once you hire a bankruptcy lawyer, all creditors’ calls can be referred to your lawyer, who will end any harassment by creditors in the interim.
Chapter 13 Bankruptcy Processing
Chapter 13 bankruptcy process is for those who do have a significant number of major assets to protect. Instead of discharging your debt outright, Chapter 13 re-arranges and/or reduces debts to come up with a reasonable payment plan that you can afford. Payment plans for Chapter 13 bankruptcy are usually spread over a comfortable three to five year time span. So, even though the bankruptcy has been approved, you’ll still be paying back your debts for several years.
Disclaimer: This is not meant to serve as legal advice. You must consult a lawyer for proper legal advice.
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