Many people across Florida and the rest of the nation struggle to stay on top of their bills and finances, and if you list yourself among them, you may be looking for a fresh start. Bankruptcy may provide a means through which to get your financial life back on track. However, it does not happen overnight.
Per Quicken Loans, when you file for consumer bankruptcy, you do so through either a Chapter 7 or Chapter 13 filing. There are many important differences between the two types of consumer bankruptcies, including how they work, how you qualify for them and how long each takes to discharge your debts.
Chapter 7 debt discharge
In a Chapter 7 bankruptcy, you may have to liquidate some of your assets to pay back what you owe. You also have to have limited means to qualify for this type of bankruptcy filing in the first place. If you are able to move forward with a Chapter 7 filing, know that it typically takes between about three and five months to discharge your debts via this method.
Chapter 13 debt discharge
In a Chapter 13 bankruptcy, you create a repayment plan that enables you to pay back at least a percentage of what you owe your creditors. If you stay atop of your payments for long enough, you can discharge many of your remaining debts. Discharging debts through a Chapter 13 filing often takes between about three and five years.
Many different factors help determine whether one type might better suit your needs, including whether you have current income and whether you have concerns about losing your home or other valuable assets.
