How Long Does the Bankruptcy Process Last?

Many debtors always ask about how long their bankruptcy case would last maybe because they want the bankruptcy discharged soon. Though it is not possible to determine the exact length of time it takes for a bankruptcy process to end, it is possible to estimate the length of time it may take depending on the type of bankruptcy but it is not always the same since some problems may arise during the bankruptcy process.

* Chapter 7 Bankruptcy

The Chapter 7 Bankruptcy, also known as the liquidation bankruptcy, is a personal and corporate bankruptcy petition which would have your non-exempt assets liquidated in order to pay for your debt. It is known as the straightforward bankruptcy since you will not need to worry about other things such as repayment. The entire case proceeding can take somewhere between four to six months. Usually, the problem that arises which makes it have an extended timeframe is creditor objections to a debtor’s bankruptcy filings or problematic filings by the debtor. However, once those are settled, the bankruptcy is quickly concluded.

* Chapter 13 Bankruptcy

Compared to the Chapter 7 bankruptcy, Chapter 13 is a bit complex due to the repayment plans which are discussed and agreed on by the debtor and the creditor. These are called reorganization bankruptcies because they will require having a repayment plan made and proposed which is based on your income and expenses. They follow almost the same procedures as Chapter 7 but there are a lot of additional steps and procedures involved. Chapter 13 Bankruptcy can take an average of 30 to 60 months to finish and 60 months is already the maximum period allowed by the federal bankruptcy law. The repayment is what makes this type of bankruptcy take long.

* Chapter 11 Bankruptcy

Chapter 11 bankruptcy is for corporate debtors and is a much more complex process than Chapter 13 bankruptcy. Before the bankruptcy process starts, the whole thing is planned first with the assistance of financial professionals and counsel. These cases often move quickly once “first day motions” that commence the case are filed and heard. Because of the size of the corporate debtors, together with their operations and financial management, debts, assets, properties and many more, the cases under Chapter 11 can take many years just for the administration of the mentioned things. The bankruptcy case will also take some time which is why this is one of the longest bankruptcy types.

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