How Long Does It Take To File Chapter 13 – The right time to file for bankruptcy is usually after you’ve exhausted all other options to meet your financial obligations, but you still can’t pay your debts. It may be time to file for bankruptcy if, for example, you have large debts that you cannot pay, are behind on your mortgage payments and are in danger of foreclosure, or are receiving calls from bill collectors.
Bankruptcy can often reduce or eliminate your debts, save your home, and keep bill collectors at bay. But it also has serious financial consequences, including long-term damage to your credit score. That, in turn, can affect your ability to borrow in the future.
How Long Does It Take To File Chapter 13
Bankruptcy cases are handled by the federal courts, and federal law defines six different types. The two most common types used by individuals are Chapter 7 and Chapter 13. Chapter 11 bankruptcy is primarily for businesses.
Essential Questions To Ask Before Filing For A Chapter Bankruptcy
Chapter 7 bankruptcy, the type most individuals file, is also called bankruptcy or direct liquidation. A court-appointed receiver can sell some of your property and use the proceeds to partially pay off your creditors, after which your debts are considered discharged.
Certain types of property may be exempt from liquidation, subject to certain limits. These include your car, your clothing and household items, the tools of your trade, pensions and a portion of the equity you have in your home. You should list the property you claim as exempt when you file for bankruptcy.
Chapter 13 bankruptcy results in a court-approved plan for you to pay off all or part of your debts over a period of three to five years.
Some of your debts can also be written off. Because it does not require you to liquidate your assets, a Chapter 13 bankruptcy can allow you to keep your home, as long as you continue to make the agreed-upon payments.
Chapter 13 Bankruptcy: What You Need To Know
In general, certain types of debt cannot be discharged through bankruptcy. These include child support, alimony, student loans and some tax obligations.
There are a number of steps involved in filing for bankruptcy. Failure to comply may result in the dismissal of your case.
Before you file for bankruptcy, you must complete a credit counseling session. The counselor should review your personal situation, offer advice on budgeting and debt management, and discuss alternatives to bankruptcy.
Filing for bankruptcy involves filing a bankruptcy petition and financial statements showing your income, debts, and assets. You will also need to submit a means test form, which determines if your income is low enough to qualify for Chapter 7.
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If you don’t qualify for Chapter 7, you’ll have to file for Chapter 13 bankruptcy. You’ll also have to pay a filing fee, though it’s sometimes waived if you can prove you can’t pay.
You can get the forms you need from the bankruptcy court. If you hire the services of a bankruptcy attorney, which is usually a good idea, you should be able to provide them as well.
Once you’ve filed, the bankruptcy trustee assigned to your case will set up a meeting of creditors, also known as a 341 meeting for the section of the bankruptcy code under which you are required. This is an opportunity for people or companies you owe money to ask questions about your financial situation and your plans, if any, to repay them.
Your case will be decided by a bankruptcy judge, based on the information you provided. If the court determines that you tried to hide assets or committed other fraud, you may not only lose your case, but you may also face criminal prosecution.
What Is The Difference Between Chapter 7 And Chapter 13 Bankruptcy?
After you file for bankruptcy, but before your debts can be discharged, you should take a debtor education course, which will provide you with tips on budgeting and money management. Again, you’ll need to get a certificate that proves you participated. You can obtain a list of approved debtor education providers from the bankruptcy court or the Department of Justice.
Assuming the court decides in your favor, your debts will be settled, in the case of Chapter 7. In Chapter 13, a repayment plan will be approved. Discharge of the debt means that the creditor can no longer try to collect it.
Bankruptcy has significant negative consequences on your credit history. A Chapter 7 bankruptcy will remain on your credit record for 10 years, while a Chapter 13 bankruptcy will generally remain on your credit report for seven years.
There are also limits on how often you can discharge your bankruptcy debts. For example, if you had debts discharged through a Chapter 7 bankruptcy, you must wait eight years before you can file for bankruptcy again.
Bankruptcy: How It Works, Types And Consequences
But because filing for bankruptcy is complex and must be done correctly to be successful, it is generally unwise to attempt it without the help of an experienced bankruptcy attorney.
Negotiating with your creditors, without involving the courts, can sometimes benefit both parties. Rather than risk getting nothing, a creditor may agree to a repayment schedule that reduces your debt or spreads your payments over a longer period of time.
If you can’t make your mortgage payments, it’s worth calling your loan officer to find out what options you may have to avoid filing for bankruptcy. These could include:
If you owe money to the IRS, you may be eligible for an offer in compromise, which will allow you to pay the agency less than you owe. In some cases, the IRS also offers monthly payment plans for taxpayers who cannot pay their tax obligations in one go.
How To File For Bankruptcy In California
Beware of unsolicited offers from companies that claim they can keep your home out of foreclosure. They may be nothing more than scammers.
Bankruptcy law exists to help people who have taken on an unmanageable amount of debt, often as a result of large medical bills or other unexpected expenses. But it’s not an easy process and has negative consequences for your finances in the long run.
Before filing for bankruptcy, explore all your alternatives and prepare yourself for the negative consequences. If you decide that bankruptcy is your only viable option, remember that your credit will take a hit for many years, but the negative consequences are not permanent.
Bankruptcy can eliminate many types of debt, but not all forms of debt can be discharged. For example, student loans are typically not eligible for bankruptcy unless you meet certain additional criteria, such as proving that repaying your loans would cause hardship.
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Bankruptcy typically eliminates credit card debt. However, before you file for bankruptcy with credit card debt, talk to your creditors. They may be willing to negotiate another amount for you to pay to avoid losing the entire debt.
A debt management plan is a plan developed by a credit counselor, you, and your creditors to help you more successfully pay off your debts. Debt management plans typically require consistent monthly payments, and you can’t take out new credit while paying off your debts.
Knowing when to file for bankruptcy is critical to minimizing negative financial consequences. Filing for bankruptcy can cause significant damage to your credit history, but it can be the best solution to dealing with debt you can’t pay.
Consider consulting with a reputable credit counselor to explain all of your repayment options before filing for bankruptcy.
How Often Can You File Bankruptcy?
By using credit carefully in the future and paying your bills on time, you can begin to rebuild your credit and gradually leave bankruptcy behind.
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The offers listed in this table are from associations from which you receive compensation. This offset can affect how and where tiles appear. it does not include all the offers available in the market. One of the first questions clients will ask Greensboro bankruptcy attorneys when they meet is, “how long does Chapter 7 bankruptcy take in North Carolina?” It’s a fair question. When you’re dealing with overwhelming debt every week that you have to keep managing, it feels like a year. Of course, you want to know how long Chapter 7 bankruptcy takes.
Unfortunately, there is no one “right answer”. There are many variables when it comes to a Chapter 7 case that can affect the time frame, however, if you have NC bankruptcy attorneys like ours at our Greensboro law firm Ivey McClellan, you can expect to get the fastest resolution possible for your case.
How Long Is Bankruptcy On Your Credit Report?
The standard answer is that most Greensboro Chapter 7 bankruptcy cases take 4-6 months to complete. Without complications or other delays, there is a chance it will be done in less than four months. Most cases are discharged within six months of the date of presentation.
A Greensboro Chapter 7 begins like all other bankruptcy proceedings with the filing. Our Greater Piedmont Triad law firm has the expertise to quickly gather your information
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