With the increasing cost of living, it is not surprising that more Floridians are experiencing overwhelming financial stress. When debts become unmanageable, many Floridians considering bankruptcy wonder how long before Chapter 7 bankruptcy can provide relief from crushing debt.
Automatic stay
The good news is that upon filing a Chapter 7 bankruptcy petition, there is an automatic stay of most collection actions against you and your property. This means that most creditors must stop contacting you or trying to collect on debts while your bankruptcy is pending.
Bankruptcy court timeline
Following the filing of a bankruptcy petition, the filer has 14 days to submit forms to the court listing creditors, assets, income and other specified financial information.
There are other deadlines that come next and may vary from case to case, such as deadlines for providing recent tax returns and completing forms outlining your plans to keep or surrender property secured by your debt. Typically, these deadlines fall roughly within 40 days after filing the bankruptcy petition.
Approximately 50 to 70 days after filing the petition, a filer will be required to take certain actions to implement their bankruptcy plans. The filer must also complete a financial management training course.
If all goes according to plan, most Chapter 7 bankruptcies will be complete within 100 days of filing. Thus, within 100 days, most filers will receive a discharge of debts and fresh financial start.
Timelines can vary
The specific timeline in each case is dependent on a filer completing the proper forms and complying with bankruptcy court procedures, which can be complicated. Indeed, the failure to comply with court procedures can affect your ability to discharge certain debts or receive relief.
For this reason, any person considering Chapter 7 bankruptcy should consult with an experienced attorney, who can help guide you through the process to a brighter financial future.
