A bankruptcy filing can take a few months to complete, but it’s easy to get through when you have some professional help. A Montgomery County bankruptcy lawyer can help you figure out if filing is the right choice for you. Then they can make sure that you are completely prepared to go through this process while avoiding any major delays.
Are There Any Requirements That Need to Be Completed Before a Bankruptcy Filing?
Before the bankruptcy filing, you have to complete a credit counseling course. This is designed to teach you about credit and developing better financial habits. The goal is to make sure that, barring some extreme circumstances, you don’t have to file for bankruptcy again.
You also have to have all of your relevant documents and paperwork together when you file for bankruptcy. We recommend having a complete accounting of your assets, properties, and liabilities. An estimate of your current living expenses might also be needed.
How Long Does a Bankruptcy Filing Take?
The type of bankruptcy you go through matters here. Chapter 7 is known as a liquidation bankruptcy. This tends to go a bit quicker and it often requires you to sell off assets. Filing for Chapter 13 requires you to make a payment plan that will take years to complete.
In either type of bankruptcy filing, you’ll have a meeting with creditors around 28 days after filing. If everything is in order, Chapter 7 filers will receive a notice about debts being wiped out within 70 to 90 days. The case is still open, but there usually is not much else for you to do. The bankruptcy trustee will handle any remaining tasks like creditor claims and asset sales.
If you filed for Chapter 13 bankruptcy, you should have a hearing scheduled around 90 days after your initial filing. At this hearing, you will finalize your payment plan. Then you will make your payments for three and five years.
What Can Make a Bankruptcy Filing Take Longer?
There are a few things that can make your bankruptcy filing take longer. The usual problems are challenges from creditors, missing information or documents, or a requirement for the bankruptcy trustee to sell off property.
Should I Hire a Lawyer?
We do recommend hiring a lawyer when going through bankruptcy. This process requires a lot of paperwork and any missing information or documents can cause serious issues. If you want to get through this process in a reasonable amount of time, having professional help is almost a necessity.
Meet With Our Legal Team
When you want to learn more about bankruptcy and see if it’s the right move for you, contact Mudrick & Zucker. We can schedule a consultation and take a closer look at your situation to see if this is a fresh financial start that you can benefit from.
