Every bankruptcy case is unique, and it is difficult to predict exactly how long your bankruptcy case will take. The amount of time a bankruptcy case takes from start to finish depends on which type of bankruptcy you filed for and your unique circumstances.
These factors can either hasten or delay bankruptcy proceedings. Typically, chapter 7 bankruptcy takes less time than chapter 13 bankruptcies, which are more complex and usually last between three and five years.
If you are a business owner filing for chapter 11 bankruptcy, the process will likely be complicated and time-consuming.
How Long Do Chapter 7 Bankruptcy Cases Take?
Chapter 7 bankruptcies are called liquidation bankruptcies because they involve liquidating your assets to pay off your creditors. People with high debt and limited income typically file for chapter 7 bankruptcies.
For most people, a Chapter 7 bankruptcy will take around four to six months to be completed. The first step in filing for a Chapter 7 bankruptcy involves filing a petition and listing all your assets, debts, and information about your creditors.
You will need to meet with the trustee assigned your case, complete a meeting with your creditors, and give your trusty time to sell your assets and pay off your creditors. If the trustee needs more information from you, the bankruptcy process will take longer.
How Long Do Chapter 13 Bankruptcy Cases Take?
Once your petition for chapter 13 bankruptcies is filed, you will need to work with your bankruptcy trustee and create a plan to reorganize your debt. This process will involve consolidating your debts and creating a payment schedule.
The bankruptcy trustee will supervise your repayment plan. You will make a lump sum payment to the trustee every month, and the trustee will pay your creditors and turn.
There is typically more detail involved in a Chapter 13 Bankruptcy than in a Chapter 7 bankruptcy. Chapter 13 bankruptcies last longer because it usually takes between three and five years to repay debt.
How Long Do Chapter 11 Bankruptcy Cases Take?
Businesses struggling to stay open and pay their debts may benefit from filing a Chapter 11 bankruptcy. Chapter 11 bankruptcy gives business owners some time to get back on their feet financially.
Individuals can also file for Chapter 11 bankruptcy, but this is rare. A Chapter 7 bankruptcy goes fairly quickly, but a Chapter 11 bankruptcy typically involves multiple hearings. The principals will need to be prepared to testify for these hearings. As a result, Chapter 11 bankruptcy can be drawn out for a year or more.
Contact a Skilled San Diego Bankruptcy Lawyer
Do you have questions about filing for bankruptcy, including how long it will take before your bankruptcy is finalized? If so, the experienced lawyers at Bankruptcy Law Center are here to help. Contact our San Diego Bankruptcy Law Firm today to learn more about how we can help you get a fresh financial start.