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Eric L. Bolves, Esq. |
HOW LONG DOES A BANKRUPTCY TAKE?When people ask me this, they're really asking, "How quickly can I get the creditors off my back?" and "When will I be free of the debt?" A Chapter 7 case usually lasts 4 to 6 months. You get legal protection from your creditors the moment the case is filed with the Court. Practically speaking, your creditors will usually back off once they know you've retained an attorney even if the case has not yet be filed. 3 to 4 weeks after the case is filed, a hearing called a "Creditors Meeting" is held. At the meeting, a Court appointed Trustee will go over the Bankruptcy Petition and verify that it's true and correct. The trustee will also be checking to see if there are any unprotected assets that can be collected so creditors can be paid. Your creditors do have the right to show up, but this is rare. The whole thing lasts about five minutes. The creditors meeting is nothing to worry about as long your paperwork is in order and you're well prepared. Being unprepared can be very, very costly. About 60 days after the Creditors meeting, a deadline called the "Dischargeability Date" passes. If a creditor has not filed a formal objection by that time, the debt will be declared null and void when the Judge signs the Discharge Order about two week later. Unless the trustee has collected some assets, the case is not ready to close. A Chapter 13 is quite different. After the case is filed planned payments are made the Trustee. In addition to the Meeting with the Trustee, a Confirmation Hearing before the Judge is scheduled. If the Plan is approved by the Court, the case remains open for up to five years. At the end of a successful plan, a discharge order is signed removing all remaining debt. Return To Main MenuOffice Consultation Area
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