For those facing financial hardships, you may be wondering how long a chapter 7 bankruptcy takes to put you into a financial restart. This is typically a relatively quick process but can take some added time under specific circumstances.
In general, Chapter 7 filings take four to six months to complete. However, that time may be extended if:
- You do not have all of the required documentation and information
- Your trustee needs to sell property
- You are in the midst of a bankruptcy-related lawsuit
However, it is important to remember that when you file a petition for Chapter 7 bankruptcy, an automatic stay goes into effect. This means that creditors can not continue any collection activity including wage garnishment, foreclosure, repossession, and creditor calls or letters.
When You Have a Hassle-Free Filing
In most cases, filing for Chapter 7 should be straightforward and hassle-free. In those cases, you can anticipate the process lasting less than five months. During the process, you can anticipate a meeting of creditors hearing, supplying any and all additional information needed, taking the financial management course, and then finally, being discharged of your debts.
However, when things get complicated, time may be added to your process along with additional steps.
Why Chapter 7 Bankruptcy May Take a Bit Longer
When your Chapter 7 bankruptcy doesn’t go as smoothly as planned, there may be additional time needed for you to be cleared of debts.
You may experience a:
- Short delay when some information is missing but remedied quickly. This may result in a month-long delay.
- Moderate delay when there is an issue with the property that is being sold. While you may still receive your discharge quickly, your case will remain open until the issue is resolved.
- Long delay if you must undergo a bankruptcy lawsuit debating if you should receive a discharge. This can extend your bankruptcy by six months to a year.
Other situations which may lengthen your Chapter 7 discharge include:
- A trustee needs more information to supplement your documents.
- A creditor has lingering questions.
- Some of your property is being sold.
- Litigation needs to be solved.
- You have student loans you want to be discharged.
- You do not complete the financial management course in a timely manner.
Start the process of Chapter 7 bankruptcy with the Jones Law Firm.
If you have questions about the Chapter 7 bankruptcy process, do not hesitate to contact the Jones Law Firm LLC., today. We can go over the bankruptcy process and determine if a Chapter 7 filing is right for you. With offices in Reynoldsburg, Ohio, The Jones Law Firm works with clients in and around Columbus and throughout central Ohio.
Contact us today for a free consultation.