Chapter 7 bankruptcy is the fastest path to a discharge of debt. Chapter 13 bankruptcy generally takes between three and five years to complete before the courts grant a discharge of any debts not resolved during the repayment plan.
In Chapter 7 bankruptcy, there is no repayment plan. Those who pass the bankruptcy means test, which based on their income, can potentially discharge their eligible debts without making any attempt to repay them first.
Asset liquidation is sometimes part of the process, but most filers can exempt their property and avoid liquidation. How long does the Chapter 7 bankruptcy process typically take?
Chapter 7 proceedings typically only require a few months
Chapter 7 bankruptcy offers immediate relief upon filing due to the automatic stay. Collection activity typically halts, and any pending lawsuits get dismissed until the courts have had time to review the case.
The timeline to the final discharge could be anywhere from three months to six months without unusual disruptions. The volume of cases in the courts, whether or not asset liquidation must occur and other unique details about the case determine exactly how long it takes to go from filing the initial paperwork to the final discharge.
Issues with paperwork or disputes with creditors can also increase the Chapter 7 timeline. Discussing a potential Chapter 7 filing with a Miami bankruptcy attorney can help people take control of their finances and avoid common mistakes that could slow down their bankruptcy proceedings. Those who qualify for Chapter 7 proceedings can eliminate medical debt and credit card balances, as well as other eligible debts, in a matter of months.
