Bankruptcy Processes For Different Bankruptcy Chapters
If you are considering the filing bankruptcy process, it’s important to have an overview of the bankruptcy process. Because the bankruptcy procedure is federally legislated, a bankruptcy procedure does not differ from state to state. Even if you have a general understanding of the filing bankruptcy process, it’s advisable to retain the services of a bankruptcy attorney. A bankruptcy attorney will handle the specifics of your filing bankruptcy process and represent you in court.
Chapter 7 Bankruptcy Process
The bankruptcy filing process for a chapter 7 bankruptcy process usually takes four to five months from filing your bankruptcy petition to your discharge by a judge. For a chapter 7 bankruptcy process filed after October 17, 2005, it is mandatory to seek credit counseling within six months before filing. This mandatory credit counseling is at your own cost. The following step in the filing bankruptcy process is to submit your bankruptcy petition, along with your statement of financial affairs to the court. In a chapter 7 bankruptcy process an injunction called the “automatic stay” will go into effect prohibiting your creditors from any further collection attempts during the bankruptcy procedure. You will meet with a court-appointed Trustee who will oversee the liquidation of your non-exempt assets and the distribution of the resulting funds to your creditors in your bankruptcy procedure. In this bankruptcy procedure, creditors have 60 days to object to the discharge of their debt. In a chapter 7 bankruptcy process filed after October 17, 2005, you are required to complete a financial management course within 45 days after your meeting with the Trustee. Finally, if nobody objects to your discharge within the 60 day period, you will receive your Notice of Discharge from the court.
Chapter 13 Bankruptcy Process
In a chapter 13 bankruptcy process the time from filing to discharge is usually between 36 and 65 months. This filing bankruptcy process includes a repayment plan and therefore takes longer than a chapter 7 bankruptcy. After your mandatory credit counseling before filing your chapter 13 bankruptcy, your filing bankruptcy process begins with submitting your petition, along with your repayment plan, to the court. An automatic stay will go into effect that prohibits your creditors from any further collection action during the bankruptcy procedure. You will meet with a court-appointed Trustee who will evaluate and oversee your repayment plan in the bankruptcy procedure. After the court approves your plan, you only have to make your required payments on time. When you have completed all the payments due in your chapter 13 bankruptcy process, the court will provide you with your Notice of Discharge.