Millions of Americans are struggling to get a handle on their personal debt. Doing so can be incredibly stressful, too. You can be left uncertain about which bills to pay each month, worry about home foreclosure or vehicle repossession, and find yourself overwhelmed when you have to take on a second or third job simply to make ends meet. And even with all of your hard work and effort to get a handle on your debt obligations, high interest rates can have you falling deeper and deeper into the hole. Although that pressure can be grinding, you may be able to find debt relief. One of the most effective ways to do so is to seek out personal bankruptcy.
There are a lot of negative connotations associated with personal bankruptcy, but the process really can give you a new lease on life and the fresh financial start that you need. But the process can be confusing to those who are unfamiliar with it. We don’t want you to let any confusion dissuade you from pursuing the debt relief that you need, which is why in this post we at least want to discuss how long it takes to successfully navigate the process.
The answer to this question depends on the facts of your situation and the type of bankruptcy you seek. Let’s start by looking at a Chapter 7 liquidation bankruptcy. Here, the amount of time it takes to get through the bankruptcy process depends on your assets and the complexity of your estate. That said, in most instances, you can deal with creditors and secure debt relief in 5-6 months.
However, there are issues that can delay your Chapter 7 bankruptcy. This includes if you fail to take the mandatory financial management course or if a creditor files an objection to discharging certain debt (this is unusual). Additionally, if you seek to reaffirm a debt, meaning you agree to keep it post-bankruptcy, presumably so that you can retain the asset to which it’s tied, then the court will likely have to process the reaffirmation, which can delay the matter further.
What about a Chapter 13 bankruptcy petition?
A Chapter 13 bankruptcy can take longer to navigate, typically lasting 3-5 years. This is because this form of bankruptcy reorganizes your debt so that you can pay off a larger share of it effectively. At the end of the payment period, outstanding debts may be discharged, and you should be able to retain your assets. Of course, if there are issues with your payment plan, such as providing inaccurate information or missing payments, the process can be delayed and prevent you from securing the true debt relief that you want. So, too, can job loss and other financial hardships, like the onset of an unexpected medical condition.
The bankruptcy process may be your best shot at alleviating debt obligations and relieving the pressure you’re experiencing. Fortunately, the process can be friendly to you so long as you know how to navigate it. But figuring it all out on your own can be tough, especially if you’ve never delved into this area of the law before. Fortunately, this isn’t a process that you have to navigate on your own. Instead, you can work with your attorney to find the best path forward toward securing the new lease on life that you deserve.