Many responsible people are having to file for bankruptcy due to unavoidable circumstances like job loss, and lowered pay rate, and there is little in the way of alternative funding. The biggest question we ask when we are pinched to the point where we must consider bankruptcy is; how long will a bankruptcy actually take to finish?
The reply to that question can depend on several criteria, like which type of bankruptcy you need to file. Your bankruptcy attorney will give advice here, but there are many types of bankruptcy; Chapter 7 and Chapter 13. Chapter 7 is more difficult to get approved, as it is a straight liquidation of obligations with stringent regulations and criteria. Most people filing for bankruptcy will prefer to file Chapter 13 .
Your first step will be the actual filing, followed immediately by the petition to your creditors to stop collecting. They may no longer demand any cash in hand from you for outstanding debts owed, and they can’t try to take you to court or repossess any property. When you file this petition, with the names and address of all of your creditors with the court, inside several days of filing for Chapter 13 bankruptcy.
One week after you submit your list of creditors, you will be supplying the court corroboration of your assets, paychecks, expenses , as well as your financial plan for the re-organization of debts under Chapter 13, and proof that you are able to stick to the plan.
Next, you will meet with the trustee to finalize your financial plan. This meeting will be anywhere from 30 days to three month s after your initial Chapter 13 filing, and will take only fifteen minutes. The meeting will most probably consist of you swearing to tell the truth, and then answering questions that will be taken down. Your creditors will have the opportunity to ask you about your financial plan. Creditors hardly ever show up for these meetings. The repayment plan begins after this meeting.
By sixty days after the creditors meeting, there is a deadline for creditors to file lawsuits that dispute the fairness of being able to discharge a debt owed.
For Chapter 13 bankruptcy, the length of your repayment plan will depend on how much you owe, and how much money you bring in each month. The bankruptcy courts require that all plans last anywhere from 36 to 60 months, even if you are able to pay off your debts before the minimal time of three years.
Once you complete your bankruptcy case, you can expect it to stay on your credit report for between 7 and 10 years. Take this into consideration before filing if you want to borrow money and go right back into debt, or are looking for a new job. Potential creditors and employers typically do not like to see a bankruptcy on the credit report. If a bankruptcy filing is inevitable, take the time to excuse your spot to a potential employer.
When a bankruptcy filing is inevitable, be inclined(p)to hired the best bankruptcy attorney and then gather plenty of documentation, a good long term repayment plan, and patience.
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