How Long Does It Take To Complete Personal Bankruptcy?

In this issue, we’ll talk about how long it takes to complete the personal bankruptcy process.

Differences in Bankruptcy Types

The type of bankruptcy protection you apply for will determine how long the process will take. Chapter 7 bankruptcy is relatively quick and involves liquidating assets to pay off the debt – all the while keeping creditors at bay. Chapter 13 bankruptcy involves restructuring your debt so that you can pay it off in monthly installments.

Timeline for Chapter 7 Bankruptcy

Typically, it takes between 4 to 6 months for your debts to be discharged in Chapter 7 bankruptcy – freeing you from further payment. Your case will begin when your bankruptcy petition is filed with the bankruptcy court. That’s followed by a Meeting of Creditors, where a trustee assigned to your case can ask about the truthfulness of the information you’ve provided. The meeting, which is typically brief, is also an opportunity for any of your creditors to ask questions about your case. After the Meeting of Creditors, you’ll be required to complete credit counseling from an approved agency. A personal financial management class will also be included. A list of approved credit counseling agencies in Arizona can be found here.

Timeline for Chapter 13 Bankruptcy

Because Chapter 13 bankruptcy is more of a restructuring of your debt to pay off, its process can take a bit longer, anywhere from 3 to 5 years. If your household income is below that of the average Arizona household income, you’ll typically have the option of going with a 3-year plan. If your income is more, you’ll most likely have to go with a 5-year plan. As with Chapter 7, your Chapter 13 bankruptcy case will officially begin when you file your bankruptcy petition, and you’ll be required to attend a Meeting of Creditors. A few months after the meeting, a bankruptcy trustee will make a recommendation to the court about whether or not your plan will be approved.

Let The Oswalt Law Group Help You!

As you can see, filing for personal bankruptcy requires following a procedure. That’s one of the reasons it’s important to partner with someone who knows how the system works. Since no two situations are alike, we urge you to take advantage of our expertise in bankruptcy procedure and law by calling us at the Oswalt Law Group at 602) 225-2222 for a free consultation.