Deciding to file for bankruptcy is a big commitment. There is going to be a lot of paperwork involved and the process can take a while. Exactly how long it will take depends on a few factors, mostly on which form, or “chapter” of bankruptcy you end up choosing. You can expect the process to take months, but it can take years. If you are ready to file and rebuild your finances, you should consult a New City, New York bankruptcy attorney.
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. Many of your assets are sold off to pay off any dischargeable debts, but you can still keep many of your things due to how the law is structured. You file a petition for bankruptcy with the New York State court and within 15 days you and your creditors will receive notice about your case moving forward.
You have some work to do filing forms and dividing up property, but about a month later, your creditors will receive notice about a meeting where your liquidation plan is laid out and they have 60 days to object to any debts being discharged. In total, the process should take around four months to complete.
It is important to note that not everyone can qualify for Chapter 7 bankruptcy. It is often reserved for those with a lower family income than average in their county. Chapter 13 might be the best option if you do not qualify for Chapter 7.
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. This means that you will have to lay out a three- or five-year plan to pay off any dischargeable debts. As such, this type of bankruptcy is going to take you years to complete, not months.
What Other Factors Can Affect How Long the Process Takes?
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. Your bankruptcy could also take longer if some of your creditors object to stipulations of your liquidation or repayment plan.
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.
