At Deluca and Associates we understand that the decision to file for bankruptcy is not an easy choice. Working with an experienced chapter 7 bankruptcy attorney will help make the process easier, however there’s still a lot of up-front questions that require answers. One such question is “How long will this take?” While no two bankruptcy cases are alike, general guidelines can give you an idea of your filing’s timeline.
How long the process takes depends on which type of bankruptcy you wish to file for.
Chapter 7 bankruptcy cases typically take four to six months of processing before you are discharged of your debts, or when you no longer have to pay the debts yourself. In order to file for Chapter 7, you must pass a means test. If you do not pass, you’ll have to look into other forms of debt relief, such as Chapter 13 bankruptcy, debt negotiation and mortgage foreclosure defense.
Chapter 13 bankruptcy cases are different in that you are placed on a repayment plan and given three to five years to settle your debts. You are usually allowed to retain your residence and car as you payoff your debt. Following the designated period, you will be discharged of your debts so long as your payments were made on time.
Other forms of debt management also vary time-wise, such as mortgage foreclosure defense which takes anywhere from six months to a year to process. Mortgage foreclosure defense is a way of negotiating secured debt with creditors, however lack of research and patience often spell huge problems for the filer.
Debt negotiation is an option when dealing with “overly burdensome” unsecured debt, and takes about 36 to 39 months to process. You usually pay about 60 percent of your debt and won’t have to deal with bankruptcy on your record.
It’s always essential to do the proper research before filing for bankruptcy. For more on our chapter 7 bankruptcy attorney services, please contact us today.