When you are unable to keep up with debt payments, it can feel like you ’ re in an impossible situation with no end in spy. You may be starting to consider whether filing for bankruptcy is the right option. One of the first things people frequently wonder when considering bankruptcy is how long the process will take. Each site is singular, and depending on the types and amounts of debts you owe, there are different options for filing, each of which has a different timeline. In Texas, the two most common bankruptcy filings for individuals are Chapter 7 or chapter 13 .
The Difference Between Chapter 7 and Chapter 13 Bankruptcy
Before learning about the timeline of chapter 7 and Chapter 13 filings, you should understand the deviation between the two. You may or may not qualify for one or both types, and each resolves debt in a unlike manner. Some of the main differences between the two include :
- Chapter 7 filing tends to work well for those with fewer assets, while Chapter 13 benefits people with debt who own and want to keep their assets. This is because Chapter 7 filers are required to sell non exempt assets and use the profits to pay off as much debt as possible before the remainder is discharged.
- Those filing for Chapter 7 bankruptcy are required to demonstrate their income is too low to meet their monthly expenses and debt obligations, while Chapter 13 filers can have a higher income and still qualify to file for bankruptcy.
- Successful Chapter 7 filing absolves debts immediately, while Chapter 13 requires the filer to commit to a debt repayment plan for up to five years to catch up on secured debts.
- Chapter 7 is a faster process compared to Chapter 13 due to the repayment plan involved with Chapter 13 filing.
Timeline for Filing Bankruptcy
once you have determined which character of filling is best for your site, you will start to gather fiscal software documentation to include in your filing. Depending on how organized you are, this step could take days or weeks. Required documents for both Chapter 7 and Chapter 13 include :
- Proof of income
- Bank statements
- Debt billing statements
- Investment statements
- Recent tax statements
- ID and Social Security card
You may also be required to supply:
- Home and car valuations
- Photographs of rare assets or collections
- Photographs of property damages and estimated repair costs
once the necessary fiscal and personal documents have been gathered, you can prepare a bankruptcy prayer which provides the court with a complete and accurate opinion of your fiscal position. The request includes an inventory of your family property and its value, citation reports, billing statements, and proof of a completed credit counseling class. Preparing the request is the step when many people consider the aid of an lawyer experienced in bankruptcy law to ensure accurate completion and keep off delays .
The work continues to be exchangeable for both Chapter 7 and Chapter 13 bankruptcy after the petition is filed. At this item, you will be required to attend a meeting of creditors, which is a short earshot where your personal and fiscal data is verified. Those to whom you owe debts are besides entitled to attend this meet, but most preceptor ’ deoxythymidine monophosphate. When the file clerk is well-prepared and there are few creditors in attendance, this touch can be american samoa fast as 10 minutes. If there are complications or a regent requires more information, you may need to attend another listen.
Timeline for Chapter 7 Filing
After the meet of creditors is where the timeline begins to differ between chapter 7 and Chapter 13 bankruptcy filings. chapter 7 bankruptcy is a quick action that can normally be completed within six months of file. If the meeting goes smoothly, your documents were submitted accurately, and there are no objections, you are eligible for your debts to be discharged at that time. This means you are no long required to pay the debt and can begin your fiscal newly begin .
Timeline for Chapter 13 Filing
As we ’ ve discussed, the march of filing for chapter 7 bankruptcy can be american samoa fast as six months. If you are filing for chapter 13 bankruptcy, you might be dealing with the bankruptcy march for a longer menstruation. Your debts are not discharged until after you have fulfilled monthly payments on your confirmed refund plan. repayment plans last between three to five years, meaning your debts can be discharged three to five years after filing if you stick to your agreed-upon monthly payment plan.
What Could Cause Delays When Filing for Bankruptcy?
unfortunately, there are batch of opportunities for delays once you file for bankruptcy. Due to the large total of paperwork involved, there are many opportunities for error. Some situations that could lead to a delay in the summons include :
- Not adhering to deadlines and schedules set by the court
- Omitting important information or supporting documentation regarding your finances
- Misrepresenting your finances in the petition
- Creditors disputing a debt discharge
- Failing to attend the meeting of creditors or failing to obtain credit counseling
- Failing to make payments according to your Chapter 13 repayment plan
many of these possible delays can be avoided when you are filing with the help of an experience bankruptcy lawyer. An inexperienced lawyer, or one who lacks attention to detail, can besides be the cause of some delays, which is why it is crucial to research the lawyer you decide to work with to ensure they are experienced in bankruptcy law .
Experienced Texas Bankruptcy Law Attorneys You Can Trust
If you ’ re not having achiever repaying debts in a timely manner and are sick of constant contact from creditors, filing for bankruptcy may allow you to see the light at the end of the tunnel. Discussing your case with the experience attorneys at Steele Law Firm PLLC, who specialize in Texas bankruptcy jurisprudence, is a capital beginning step. We can help you understand your options, a well as steer you through the serve from begin to finish if you decide filing for bankruptcy is the best option for your situation. Contact us today to learn which option is best for you .