Many people are unfamiliar with the bankruptcy process and how long it takes. Most people have the misconception that legal proceedings can take a long time--months to years. Although this is true for most litigation cases, when you file for bankruptcy, the process is much shorter, from start to finish. Read more below for the specifics:
Chapter 7 Bankruptcy
Chapter 7 bankruptcyy, commonly known as a liquidation bankruptcy, is the most common kind of bankruptcy that people file. About 70% of all bankruptcy filings are chapter 7 bankruptcy cases. From start to finish, a chapter 7 case will usually last around 3 to 3.5 months for everything to be completed. When your case is filed, about 30 days after the filing date, you will attend your
341(a) Hearing, also called the Meeting of Creditors. Most likely, this will be the only time you will have to personally appear at a hearing. After the hearing, you will wait 60 more days for your debts to be discharged. During this time, you are simply just waiting. The 60 day time period is set by law and allows any creditors to object to the dischargeability of your debt. This generally only happens if the creditor believes there was fraud involved with the debt. After the 60 day period is up, your debts will be discharged and your case will be closed. The discharge might take anywhere from 5-10 days to process because the courts are very busy. You will receive a letter in the mail from the court letting you know that your debts are discharged. After the discharged, your chapter 7 bankruptcy case will then be officially closed, and your bankruptcy is complete.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a much more complicated and lengthy process, where you will pay back a certain percentage of your debts, as well as all of your priority debts over the term of your plan. Once your case is filed, you will attend the 341(a) Hearing. You might also need to attend your Confirmation Hearing, to determine whether or not the bankruptcy judge will Confirm the terms of your repayment plan. Generally, you will not have to go, and only your bankruptcy lawyer will. After your case is confirmed, you will continue to make your monthly plan payments on time. Chapter 13 plan lengths are usually between 36 months to 60 months. After you complete your plan and make all your payment, you will receive your discharge.
The Chapter 7 bankruptcy process is very quick and designed to give you the fresh start you are looking for, free from your debt. Contact a trusted
bankruptcy lawyer based in Rancho Cucamonga to get the process going and get out from under that overwhelming debt. Atlantis Law offers free consultations to ensure that you qualify to file chapter 7 bankruptcy and to answer all of your questions. Call us today!