Making the decision to file for bankruptcy often comes when you feel you have nowhere else to turn. Having struggled with debt and trying to dig out of a hole, by the time most people decide to move forward they have reached a point of near desperation and are anxious for the whole thing to be wrapped up as quickly as possible. It is natural to want a resolution to come quickly, but the amount of time it takes for you to start feeling a difference in your quality of life will depend upon a number of factors, including whether you have filed for Chapter 7 or Chapter 13 bankruptcy and exactly what was happening prior to your filing. Below you’ll find some basic timely information to help you anticipate how things will go.
Collection Calls – If you have been receiving harassing collection calls on behalf of your creditors, we have good news for you. Filing for bankruptcy immediately results in the issuance of an automatic stay. This is a legal notification to your creditors that you have filed for protection from your creditors and that they are no longer permitted to pursue you for the monies you owe. Their failure to comply can result in sanctions, so they are likely to pay attention and stop contacting you.
Chapter 7 Bankruptcy – Chapter 7 bankruptcy provides a complete discharge of almost all of your debts. This process usually takes between four and six months to complete once your paperwork has been filed, though some of your debt may be discharged as soon as three months after your filing, and if you have no assets to be liquidated then things can move even faster.
Chapter 13 Bankruptcy – Some people do not qualify for a Chapter 7 bankruptcy because their income is too high for it to be considered unreasonable to expect them to ever be able to pay off their debts. In this case you may be shifted to a Chapter 13 bankruptcy. Under Chapter 13 you will be provided with a repayment plan that either extends the amount of time that you have to pay your debt, lowers your fees, or reduces the amount of money that you have to pay off. In some cases, your plan will represent all three. Most Chapter 13 bankruptcy plans are created within a period of months, but the time it takes for all debts to b discharged is generally between three and five years.
If you would like more information about bankruptcy and how it can change your life, contact our bankruptcy attorneys today to set up a time for a consultation.
