Bankruptcy's primary benefit is its potential to eliminate some or all of a filer's unsecured debts. With thousands of dollars in debt often at stake, speed is not necessarily bankruptcy's most important asset.
Nevertheless, many filers are surprised to discover how efficient bankruptcy can be. Chapter 7 cases usually take several months, while chapter 13 offers long-lasting debt relief in just a few years. The speed of bankruptcy, though, varies case by case.
Most importantly, bankruptcy offers unique protections that kick in as soon as you file your case with the court. The lasting effects become permanent once the court issues a debt discharge at the end of the case.
Between the two primary chapters of personal bankruptcy, Chapter 7 is usually the swiftest. Depending on a filer's number of assets, and the complexity of the case, Chapter 7 may be over in just a few months.
Here are the possibilities in Chapter 7 bankruptcy:
Remember, though, that other benefits of bankruptcy occur immediately after the petition is filed. These include benefits such as bankruptcy's ability to end wage garnishment, stop collection lawsuits, and prevent creditors from harassing filers.
On the other hand, Chapter 13 usually takes between three and five years. Why the longer timeframe? Well, Chapter 13 is designed for people with steady incomes who wish to pay their debts at a more reasonable pace.
Chapter 13 bankruptcy is usually stretched over a period of a few years to allow filers with a reliable source of income to maintain a reasonable standard of living while paying off their debts at an affordable rate.
In addition, the filing of a Chapter 13 petition may immediately:
The speed of your bankruptcy depends largely on your unique circumstances and your state’s laws. To learn more about how fast your bankruptcy might go, contact a local bankruptcy attorney today.
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