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Are You Tired Of Waiting When Filing For Bankruptcy?

Bankruptcy is a complicated process that is not resolved overnight.  The end goal, known as a discharge of debt, may take years to accomplish in some cases.  The amount of time your bankruptcy will take depends on what type of bankruptcy you file, the amount and type of your debt, and whether you have a good bankruptcy attorney to represent you.  Bankruptcy attorneys like those at Oswalt Law Group in Phoenix can often help you avoid long waiting periods by advising you on the right way to handle your bankruptcy.

Two Types of Bankruptcy

For most consumers, one of two types of bankruptcy are appropriate:  a Chapter 7 or a Chapter 13.  Which type you choose depends on several factors:  the amount of debt you owe and the amount of assets you have; whether you want to keep your assets or forfeit them; and whether most of your debt is secured or unsecured.  A Chapter 7 bankruptcy is usually the fastest route to discharge.  Chapter 7 is also known as a “liquidation” bankruptcy, although technically you may not have to give up all of your assets if you file Chapter 7.  Some items will be protected through exemptions; however, the general idea in a Chapter 7 is that you show the court that you cannot pay your debts and that you are willing to surrender any property not covered by an exemption.  Once this is done, the court will usually grant you a discharge in a relatively short period of time.   Many Chapter 7 bankruptcies take less than a year from initial filing to discharge, and some take less than six months, depending on court schedules. A Chapter 13 bankruptcy, on the other hand, can take years to complete.  This is because Chapter 13, or a “wage-earner” bankruptcy plan, is designed to allow you to keep as much of your secured property as possible.  You can often keep your home, vehicle and personal possessions; however, you will have to pay for them.  You and your attorney will craft a Chapter 13 Plan which outlines the amount available to your creditors, your plan to repay secured debt and any provisions such as lower interest rates that you may wish to include.  Once the plan is approved by the court and your creditors, you begin making payments to a trustee, who then distributes the funds to the creditors.  This may go on for up to five years before your creditors are paid in full or you are discharged from your unsecured debt and are able to take over payments to your secured creditors yourself. For more information on bankruptcy, contact the attorneys at Oswalt Law Group in Phoenix today.    

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