The average timeframe for Chapter 13 bankruptcy is higher than Chapter 7 bankruptcy under most circumstances. Chapter 13 focuses on a repayment plan, which may be up to 3-5 years, and the overall bankruptcy procedure may take about a year from the date bankruptcy is filed. The same when considered Chapter 7 can be within the range of a year for the whole process. So, chapter 7 definitely frees your shackles away quicker, and Chapter 13 might just take a bit longer.
What is the information required to file bankruptcy?
- List of all lenders and creditors may be relatives or financial institutions, all have to be listed accurately
- Household income and expenses
- List of assets held by the filer, all relevant possession documents, all loan documents, or lien documents (if any), provision for potential exemption for assets that can be excluded (if any)
- Regular Tax filing information, to verify match income, refund, and other details
- A certificate of the credit counseling certificate is mandatory and is part of the bankruptcy procedure
- Finally, a declaration suggesting no recent dismissals for the filer within 180 days due to unacceptable conditions. To know more about what can lead to instant bankruptcy dismissal, log on to https://www.recoverylawgroup.com/bankruptcy/.
What is the step-by-step process once the bankruptcy petition is filed?
- Automatic Stay or a status quo is maintained and harassment, threatening, and foreclosure of any kind of assets come to an immediate halt. It is important to note that this stay is temporary and does not close or eliminate the debt or its payment.
- A creditor or lender meeting is scheduled soon after the petition is accepted. The meeting need not necessarily commence in a court setup, it can be at an informal place as well. It is overseen by a trustee appointed by the court.
- A repayment plan has to be proposed by the filer after making a thorough assessment of his house income and expenses. Once the repayment plan is proposed soon after filing the bankruptcy, the same is evaluated.
- The payment plan must be approved by the trustee and the bankruptcy judge. Once it is approved, the bankruptcy process is more or less completed in the legal records.
- The payments as per the plan are not directly credited to the lenders instead a lumpsum amount is paid out to the trustee and the trustee then distributes the money to the lender as per the plan agreements.
To simplify this procedure and ensure favorable bankruptcy terms, contact an expert law agency based out of Los Angeles and Dallas, TX at 888-297-6203.