How Long Before the Bankruptcy Process is Complete?

How Long Does Bankruptcy Take?

While it’s possible to get debt relief in a matter of months, the length of the bankruptcy process will depend on what chapter is filed. Whether it’s Chapter 7 or Chapter 13 , each option offers relief under different rules and it may depend on the amount of debts included in your filing.

Chapter 7 is commonly filed and it is usually completed in around four to six months. This option allows qualifying debt such as medical bills , credit cards and unsecured debt to be discharged or eliminated.  This chapter is usually filed by those with limited income and fewer assets. When you file, you provide a list of all debts and creditors.  A meeting is scheduled after your petition is filed with the bankruptcy trustee to review your case.  Unless any creditors object to your filing or there are any issues, the bankruptcy can be completed within a few months.

Chapter 13 gives debtors an opportunity to restructure their debt with a repayment plan which can last from three to five years.  This chapter gives working individuals debt relief through a payment plan based on their income but on a set schedule.  The debtor works with their bankruptcy trustee to develop a plan to organize debt.  When the plan is approved by the court, the debtor begins making payments according to the schedule.  This option has helped many consumers pay down outstanding debt, retain personal property and even discharge qualifying debt at the end of the payment period.