Filing for bankruptcy is the best financial decision for many people looking for a fresh start. One of the most common questions asked by our clients is how long the process will take? The answer is that it depends on the type of bankruptcy you file, and at Cornwell Law Firm in Duluth, our knowledgeable and dedicated Georgia bankruptcy attorneys are prepared to answer this and any other questions that you may have about the bankruptcy process. To learn more, call or contact our office today to schedule a bankruptcy consultation.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the fastest type of bankruptcy proceeding. This process typically takes anywhere from three to six months, depending on the complexity of the case and other factors. The first step involves filing the initial bankruptcy petition with the court that includes many documents detailing your eligibility, income, assets, debts, and other vital information. Next, a creditor’s hearing is scheduled about one month later. At this hearing, the bankruptcy trustee and creditors have an opportunity to ask questions regarding various debts.

After the hearing, the creditors have a month to accept or reject the bankruptcy plan. If they reject it, the process may take longer as the trustee will need to resolve the issue before the proceeding can move forward. Once that is complete, the final discharge of debts generally happens about 60 days later.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy takes longer than Chapter 7 bankruptcy because this type of bankruptcy filing establishes a repayment plan for the debtor. The filing process for Chapter 13 bankruptcy usually takes around three months. A debtor must attend credit counseling sessions, and their attorney will file the Chapter 13 bankruptcy petition with the court. Within two weeks of the initial filing, a repayment plan must be submitted that details how the debtor will repay their creditors. About a month later, the bankruptcy trustee and creditors will have an opportunity to ask questions about the plan at a creditor’s hearing.

If the creditors do not approve of the repayment plan, the process stays until the issue is resolved. Once approval is granted, the bankruptcy court will also need to confirm the plan at a hearing within 45 days to finalize the initial proceeding. A repayment plan is either a three-year or five-year plan, where the debtor makes a single payment to the trustee who then distributes payments to the creditors. Once all of the payments have been made on the repayment plan the bankruptcy is officially discharged.

Talk to Cornwell Law Firm Today

There are many facets that go into determining what type of bankruptcy is right for you, including the length of time that the proceeding takes. If you have more questions about filing for bankruptcy in the Duluth area, call the office or contact us at the Cornwell Law Firm today to speak with one of our experienced bankruptcy lawyers and schedule a free consultation of your case.

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