How Long Does a Bankruptcy Take to Conclude in PA?
Bankruptcy provides immediate relief from creditors but the amount of time it takes to actually conclude your case depends on the type of bankruptcy you file.
Bankruptcy provides a way for honest debtors who have fallen behind on bills to regain their financial security. It allows you to completely rid yourself of certain types of debts and restructure payments on others. The process of filing for bankruptcy can be simple or complex and is likely to take at least several months to conclude, depending on the type of bankruptcy you file. However, once you begin the process, it puts an immediate stop to any creditor harassment or legal actions you may be facing and either eliminates or defer payments until your case is resolved.
Timeframes for Filing Chapter 7 Bankruptcy
There are two basic types of bankruptcy available through the U.S. Courts that provide relief for people who are struggling with paying their bills, often through no fault of their own. Chapter 7 bankruptcy is designed to help eliminate unsecured debts, such as credit card balances, medical bills, personal loans, and past due rent or utility company balances. While each case is different, the following details the process and can give you a basic idea of the timeframes involved:
- The first step is to meet with our Philadelphia bankruptcy attorney. If you decide to move forward in filing for Chapter 7 bankruptcy, you can generally stop making payments on your unsecured debts.
- Our office will work with you in collecting the information needed to submit your bankruptcy petition. Once it is filed, an automatic stay is put in place. This prevents your creditors from contacting you or taking any further actions against you to collect on the debt.
- Within one month of filing, the court will schedule a meeting with your creditors and the trustee assigned to your case. They will review the information provided to ensure it is accurate.
- Generally, the court will discharge your debts within two to three months after this meeting, provided you have completed the required credit counseling course.
How Long Does It Take to Conclude Chapter 13 Bankruptcy?
Chapter 13 bankruptcy deals with both unsecured and secured debts, such as mortgages and car payments. Rather than eliminating these debts, the court will restructure payments on them. This may involve spreading out the payback period, reducing interest rates, and eliminating penalty fees, thus reducing the overall amount owed.
It follows roughly the same timeline as Chapter 7 bankruptcy. However, rather than having all your debts discharged, you will need to make the restructured payments directly to your trustee. This usually lasts for a period of five years, during which time you can begin rebuilding your credit.
Contact Our Philadelphia Bankruptcy Lawyer George Tadross
To find out more about the bankruptcy process and which type is right for you, reach out to Tadross Law. Call (267) 382-4466 or contact our Philadelphia bankruptcy lawyers online and request a free consultation today.