The length of a bankruptcy largely depends on the Chapter of bankruptcy that is filed for, and the complexity of the individual case. If you are considering filing for bankruptcy in Frederick, it is important to recognize that time and effort will need to be invested in order to achieve a debt free life.
You should also understand as much as possible about the bankruptcy process before you make the commitment to file. This will help you to choose the bankruptcy Chapter that is right for you. The two most common options for individual debtors are Chapter 7 and Chapter 13 bankruptcy. In this article, details about the length and the process of each will be discussed.
The length of a Chapter 7 bankruptcy
In filing for Chapter 7 bankruptcy, you will be subject to a shorter process. A typical Chapter 7 bankruptcy filing takes between three and six months. However, not everyone is eligible to file, and the Chapter does not suit all circumstances.
Chapter 7 bankruptcy is only eligible to those who can pass a means test. This test measures a debtor’s assets, debts and income. If a debtor has an income that is considered high enough to pay off the debts over time, it is likely that they will need to file for a different bankruptcy Chapter instead.
The length of a Chapter 13 bankruptcy
Chapter 13 tends to suit individuals who have a steady income and who do not want to lose their home. While Chapter 13 has many benefits, it also takes a much longer time. Debtors filing for Chapter 13 bankruptcy should expect to spend between three and five years repaying their debts steadily.
The time frame associated with Chapter 13 bankruptcy may seem extreme, but it allows you to take a slow and steady approach. It also allows you to benefit from potential debt discharges upon completion of the plan.
It is important to use careful consideration in deciding how to proceed with bankruptcy. However, you should also note that failing to take action in tackling your debts could lead to further financial trouble. By understanding the law in full, you will be better equipped to make the right choice.