In New York, the bankruptcy process can take anywhere from a few months to several years to complete, depending on the type of bankruptcy you are filing. In many instances, Chapter 7 bankruptcy can take four to six months from filing to discharge, whereas a Chapter 13 case will typically last three to five years, due to the court-imposed repayment plan. Understanding the timeline and potential delays can help you prepare for the bankruptcy process in Rockland County if you are planning on filing. If you are ready to file and rebuild your finances, you should consult a New City, New York bankruptcy attorney.
How Long Does the Bankruptcy Process Typically Take?
The length of a bankruptcy case will ultimately depend on the chapter you file, how complex your finances are, if there are any creditor objections, and how quickly required documents are submitted. While some cases can move efficiently through the court system, other cases can be delayed as a result of disputes and administrative errors.
Individuals filing for bankruptcy in Rockland County will generally proceed through the United States Bankruptcy Court for the Southern District of New York. Though bankruptcy rules apply nationwide, local court procedures can impact how quickly a case proceeds through the system.
Typical Bankruptcy Timelines
- Most Chapter 7 cases are completed within four to six months
- Most Chapter 13 cases last three to five years
- Delays may arise if the paperwork is not complete or if creditors dispute certain aspects of the case
- Timelines will vary, based on the finances of the filer and the court’s requirements
- Working with an experienced bankruptcy attorney is integral to avoiding unnecessary delays
Which Is the Quicker Form of Bankruptcy?
There are two types of bankruptcy generally available to individuals. You can file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. There are some big differences between them, but let’s focus mostly on how long each method can take to discharge your debts.
Chapter 7, sometimes called “liquidation bankruptcy,” is the quickest form.
Why Chapter 7 Is Usually Faster
- Many non-exempt assets are sold to pay dischargeable debts
- Certain property may be eligible for protection through bankruptcy exemptions
- Creditors will be notified shortly after the petition is filed
- A trustee will be appointed to your case to review your financial information
- Most debtors are eligible for a discharge in a few months
What Happens During a Typical Chapter 7 Case?
- A bankruptcy petition is filed with the court
- A trustee is appointed to the case
- The 341 meeting of creditors is scheduled, typically a month out from filing
- Debtors are required to complete necessary financial management courses before discharge
- Creditors may be able to object to a discharge in limited circumstances
- Discharge orders are generally issued within 70 to 90 days of the 341 meeting
- The trustee may continue the administration of certain assets even after a discharge is granted
Who Qualifies for Chapter 7 Bankruptcy in Rockland County?
It is important to note that not everyone can qualify for Chapter 7 bankruptcy. Eligibility is dependent on your income, expenses, and whether you pass the bankruptcy means test.
Common Eligibility Considerations
- Household size
- Household income
- Disposable income
- Prior bankruptcies
- Ability to repay creditors
How Long Does Chapter 13 Take?
Chapter 13 takes longer because it helps you develop a payment plan that will meet the needs of your creditors.
Why Chapter 13 Takes Several Years
During Chapter 13, you will be placed on a repayment plan that typically lasts three or five years, depending on the circumstances of your case.
What Happens During a Typical Chapter 13 Case?
- A bankruptcy petition is filed
- The debtor attends the 341 meeting of creditors
- A repayment plan is proposed and reviewed by the court
- Creditors can object to portions of the plan
- The court will confirm the plan, making the debtor legally obligated to comply with the terms and conditions
- The debtor will make monthly payments for three or five years in accordance with the court-approved plan
- Annual tax returns must be submitted during the repayment period
- Remaining eligible debts may be discharged if the plan is successfully completed
What Factors Can Affect How Long a Bankruptcy Case Takes in New York?
The process can take a little longer depending on how much debt you have, how long you take to file all of the necessary paperwork, and how long you take to figure out which assets you would like to try and keep.
Common Reasons for Bankruptcy Delays
- Failure to submit required documentation
- Errors in the bankruptcy schedule
- Ongoing creditor lawsuits
- Objections from creditors
- Disputes over asset valuation
- Amendments to repayment plans
- Requests for additional information
- Failure to complete necessary debtor education courses
Contact a Bankruptcy Lawyer in New City
If you are considering filing for bankruptcy, contact The Lauterbach Law Firm. This process can be a lengthy one, with plenty of paperwork and big decisions that need to be made. We can guide you through this undertaking, tell you more about your options, and help you get a fresh start for your financial life. Contact us today to learn how we can help you.
