Wait For The Adjudicator’s Decision
After you submit your application, the adjudicator will decide either to make a bankruptcy order or reject your application. The adjudicator has 28 days to make their decision.
If they need more information about your case, they will contact you. If they do need to contact you, they will have 14 more days to make a decision.
If they decide to reject your application, you can ask them to review their decision. If they confirm their decision to reject your application after the review, you can appeal to the court against the decision.
To request an appeal, you need to submit form N161 to your local court that deals with bankruptcy. You can find form N161 on the GOV.UK website.
Learn About Your Option From An Experienced Arizona Bankruptcy Attorney
At Yusufov Law Firm, we take the time to carefully address all of our clients questions so that they fully understand what to expect from their bankruptcy case. We go over each step of the bankruptcy process and take all necessary steps to prevent complications and delays when possible. Whether you are a consumer filing under Chapter 7 or Chapter 13, or a business filing under Chapter 11, attorney German Yusufov will be on your side every step of the way. Some cases take months while others take years, though our goal is always for clients to get the most benefits possible from their case. For a free consultation with an Arizona bankruptcy lawyer, please contact us online, or call 480-788-0098 in Phoenix/Mesa or 520-745-4429 in the Tucson area. We are ready to help you find financial freedom.
Potential Roadblocks To Discharge
There are several things that can delay a bankruptcy proceeding. If one or more of your creditors objects to the inclusion of a specific debt in your filing, an adversary proceeding can be filed against you. All adversary proceedings must be resolved before you can receive a discharge. The trustee can also initiate an adversary proceeding if he believes that your filing violates the federal bankruptcy code in some way. If you file Chapter 13, you must submit a repayment plan to the court and your creditors for approval. If either the court or your creditors deems the plan unacceptable, you will have to resubmit a modified plan in order for your case to proceed.
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What Is A Chapter 13 Bankruptcy
A Chapter 13 bankruptcy case is one of the main types of consumer bankruptcy relief for individual filers. There is also the option of a Chapter 7 case, where you are able to walk away from all of your debt and make a fresh start.
Chapter 7 is what most people think of when considering filing for bankruptcy relief. A Chapter 7 case is usually pretty quick and can be completed within four to six months after filing your case.
Chapter 13, by contrast, will typically last for three to five years and involves a repayment plan, where you pay some or all of the money owed to your creditors over the length of the plan.
The Timeline For Chapter 7
A Chapter 7 bankruptcyis usually the faster of the two personal filing types, but that doesnt mean that its a fast track to a clean slate. Chapter 7 filings take anywhere from four months to one year to complete. The specific time depends on the number of assets you have to liquidate and the details of your specific case.
Fact: About 2/3 of the filings submitted in the 3rd quarter of 2014 were Chapter 7.
So if you have a limited number of assets to liquidate and everything goes smoothly with your means test and the rest of your filing, then you could be done in just a few months. But if there are any complications or issues with the asset liquidation, your filing may take long. The majority are complete in six months, but there are Chapter 7 filings that take up to one year.
Keep in mind that once the filing is complete and all of your remaining balances are discharged, the Chapter 7 bankruptcy creates a negative item that remains on your credit for ten years from the date of discharge.
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Filing The Bankruptcy Petition
The bankruptcy petition is the most complicated part of this process. The petition is an intricate document that describes and categorizes all of your outstanding debts using a strict format.
Generally, a bankruptcy lawyer will create this document for you after asking you questions about your financial situation and looking over your financial documents.
Once your lawyer collects the information and drafts the document, you formally file the petition with the courts. This officially starts the bankruptcy timeline.
Can A Debtor Receive A Second Discharge In A Later Chapter 7 Case
The court will deny a discharge in a later chapter 7 case if the debtor received a discharge under chapter 7 or chapter 11 in a case filed within eight years before the second petition is filed. The court will also deny a chapter 7 discharge if the debtor previously received a discharge in a chapter 12 or chapter 13 case filed within six years before the date of the filing of the second case unless the debtor paid all “allowed unsecured” claims in the earlier case in full, or the debtor made payments under the plan in the earlier case totaling at least 70 percent of the allowed unsecured claims and the debtor’s plan was proposed in good faith and the payments represented the debtor’s best effort. A debtor is ineligible for discharge under chapter 13 if he or she received a prior discharge in a chapter 7, 11, or 12 case filed four years before the current case or in a chapter 13 case filed two years before the current case.
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You Must Attend A Creditors Meeting
About a month or so after you file, you will need to attend a creditors meeting where a trustee will ask about the information you submitted you will have to answer under oath. This meeting is known as the 341 meeting.
Within two months of attending the creditors meeting, you must complete a financial counseling course. After youve received budget counseling, you wait to receive a discharge of your debts from the bankruptcy court.
Many people who file for Chapter 7 bankruptcy can retain all their assets. However, you cannot sell or give away any property without clearing it with the trustee during this time. Most bankruptcy cases generally receive a discharge order from the court about 60 days after the initial creditors meeting.
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How Long Does It Take To File A Chapter 7 Bankruptcy Case
There are a few things youâll have to do before you can file bankruptcy. How long this takes depends entirely on how quickly you move through the steps. Some people take weeks or even months to get ready others get it done in the span of a week. Hereâs a breakdown of these pre-filing steps:
Gathering information: Youâll need to collect some documents, like your tax returns and paycheck stubs so you can submit them to the court and/or the trustee. But, youâll also need to have information about how much you spend on living expenses, what your assets are and how much theyâre worth.
Taking credit counseling: This course has to be completed in the 180 days before your bankruptcy petition is filed with the court. It usually takes only 1 hour.
Completing the bankruptcy forms: This is often the longest part of the process. Folks working with a law firm wait for the lawyerâs office to complete this step. Once done, they’ll meet with the bankruptcy lawyer to sign their forms. Folks filing on their own can take several hours to fill out the bankruptcy forms. Upsolve users typically take a total of about 3 hours to provide the information needed to generate their forms.
Filing the forms with the court: How long this takes depends on whether you go to the bankruptcy court in person or mail it in. Due to COVID-19, some courts have started accepting forms through electronic means, like sending an email or uploading the documents through a portal.
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Chapter 7 Bankruptcy Timeline: About 100 Days
Of course, your own Chapter 7 bankruptcy timeline may vary. However, in most cases, it takes just over three months to complete. Some complicating factors that could affect how long it takes to resolve your case may include:
- The state where you live as well as how long youve lived there
- How long it takes you to gather all relevant financial documents in order to file in court
- When you can schedule and attend all required counseling courses, meetings, etc.
- Whether you can pay all legal and filing fees up front, or over time using a payment plan
What Is A Notice Of Chapter 13 Bankruptcy
Bankruptcy is a complicated legal process that involves in a number of steps. When filing for personal bankruptcy protection, you may opt for Chapter 7 or Chapter 13, depending on your specific situation. How long it takes to resolve your bankruptcy case typically depends on which chapter you file, how extensive your debts are and whether any issues arise during the process.
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The Means Test For Chapter 7
To be eligible to file Chapter 7 bankruptcy, you must pass the means test. The means-test requires borrowers to earn below a specified income. The income is based on the median income of similar household size. The median income is determined by the U.S. Census and is updated frequently.
The test is designed to weed out those who âneedâ bankruptcy from those who donât. It was developed to keep people from abusing Chapter 7â bankruptcy. You only have to pass the means test for Chapter 7 bankruptcy. Borrowers seeking relief under Chapter 13 will not be required to pass the means test. Additionally, the means test may not be applied in your case if you are a disabled veteran. Also, you may be exempt if your debt is primarily business-related debts, as opposed to consumer debts.
Consulta A 5 Star Bankruptcy Attorney In Tampa With Free Consultations
We invite you to contact Florida Law Advisers, P.A. to schedule a free consultation with a bankruptcy attorney at our firm. We will take the time to review your financial situation to see if bankruptcy is the best option to help you get out of debt. At Florida Law Advisers, P.A., we understand that filing for bankruptcy can be a very confusing and intimidating process. That is why we work so hard to make the process as easy as possible for our clients.
Our Tampa bankruptcy attorneys have years of experience helping people solve their financial problems and obtain a fresh start. Regardless, whether you need help with Chapter 13, Chapter 7, or other forms of debt relief, our professional legal team can help. Call 800 990 7763 to speak with a bankruptcy attorney at our firm today.
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Timelines During The Bankruptcy Process
In general, here are some basic timelines you can expect, after you begin the bankruptcy process:
Stopping : Immediate upon filing. Once you have filed a bankruptcy, the automatic stay of the Bankruptcy Code protects you from . Creditors who contact you attempting to collect a debt after you have filed for bankruptcy can be found to have violated the automatic stay. Creditors who knowingly violate the automatic stay can be required to pay damages to you, including court costs and attorneys fees.
Stopping foreclosure, repossessions or wage garnishments: Immediate upon filing. Any legal actions, such as foreclosures, repossession or wage garnishments, will be stopped upon the filing of your bankruptcy.
Chapter 7 bankruptcy to discharge your debts: Generally 90 days from start to finish. The usual bankruptcy takes about two weeks to prepare .
Chapter 13 bankruptcy to restructure your debts: Generally takes between 36 and 60 months to complete your case and receive your discharge. The case normally takes approximately two weeks to prepare and file a complete and accurate petition and repayment plan with the court .
Visit our FAQ page for answers to additional questions you may have about bankruptcy.
We Will Help You With Chapter 7 Bankruptcy Paperwork
Bankruptcy cases involve a great deal of paperwork, and we will help you with all of it. Declaring Chapter 7 bankruptcy starts with filing a petition for debt relief. When filing your petition, it should include the following schedules:
- Assets and liabilities
- Executory contracts
- Unexpired leases
You must provide your case trustee with all relevant and recent tax returns, as well. You might also need to provide proof of credit counseling and information on state or federal student debt. The forms that make up your official petition include:
- A complete list of creditors and amounts owed
- A statement of income sources and amounts
- A complete list of all debtor property
- A detailed list of all monthly living expenses
Because each individual filer will have a unique set of assets, debts, and financial challenges, discharging debt through bankruptcy can be varied and complex. Our team can help you compile the right schedules and documents for your case, submit them on time, and guide you as you navigate the bankruptcy court system.
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Bottom Line: Bankruptcy And Credit
I have personally seen the impact of the bankruptcy petition on some debtors five to seven years later and most are doing fine, says Arnold Hernandez, an attorney in Tustin, Calif., who handles bankruptcy cases. Bankruptcy is not forever.
Chapter 7 Bankruptcy Discharge Timeline
While it’s possible that you could receive a discharge within as few as 82 days after filing your case, it would be unusual. The court usually needs an additional twenty days to accommodate scheduling and other procedural requirements.
So that you’ll know what to expect, the Chapter 7 discharge timeline below covers all aspects of a typical bankruptcy filing, from the initial gathering of documents up until receiving the discharge, and should help clarify how long it will take to get a Chapter 7 discharge:
- Gathering documents. You’ll start by locating financial information, such as bills banking, retirement, and investment account statements paycheck stubs and tax returns.
- Preparing the paperwork. You’ll disclose all aspects of your finances on official bankruptcy forms. Once completed, the average bankruptcy petition, including schedules and other required documents, will be between 35 and 50 pages.
- Completing the credit counseling course. If you’re an individual bankruptcy debtor, you’ll also need to take a credit counseling course from an approved provider. Business entities are exempt from this requirement. Most courses can be completed online within a few hours.
- Passing the deadline for creditors to object. Creditors can object to the court discharging its debt but must do so within 60 days of the first day set for the 341 meeting of creditors. The court will wait until this deadline passes before issuing the discharge.
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How Long Does A Chapter 7 Bankruptcy Take
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In a Nutshell
Once filed, a Chapter 7 bankruptcy typically takes about 4 – 6 months to complete. The bankruptcy discharge is granted 3 – 4 months after filing in most cases.
Written byAttorney Andrea Wimmer.
Most Chapter 7 bankruptcy cases take between 4 – 6 months to complete after filing the case with the court. The order erasing eligible debts can be granted as early as 90 days from the date the case was filed. No-asset cases are typically closed a couple of weeks after the discharge date.
Can A Judge Turn Down A Bankruptcy Petition
A judge may decide that you have enough income or assets to repay your debts under Chapter 13 rather than eliminate your debts under Chapter 7. The judge may dismiss your Chapter 7 bankruptcy case in the following cases:
- If you are not eligible for Chapter 7 bankruptcy relief AND do not convert to Chapter 13, or
- If you do not qualify for bankruptcy relief due to a previous case being dismissed. 11 U.S.C. § 707
- You received a discharge under Chapter 7 within 8 years prior to the date of filing your new Chapter 7 case. 11 U.S.C. § 727
A trustee is assigned to each bankruptcy case and will determine if you can pay back some of the debt that you owe.
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When Does The Discharge Occur
The timing of the discharge varies, depending on the chapter under which the case is filed. In a chapter 7 case, for example, the court usually grants the discharge promptly on expiration of the time fixed for filing a complaint objecting to discharge and the time fixed for filing a motion to dismiss the case for substantial abuse . Typically, this occurs about four months after the date the debtor files the petition with the clerk of the bankruptcy court. In individual chapter 11 cases, and in cases under chapter 12 and 13 , the court generally grants the discharge as soon as practicable after the debtor completes all payments under the plan. Since a chapter 12 or chapter 13 plan may provide for payments to be made over three to five years, the discharge typically occurs about four years after the date of filing. The court may deny an individual debtor’s discharge in a chapter 7 or 13 case if the debtor fails to complete “an instructional course concerning financial management.” The Bankruptcy Code provides limited exceptions to the “financial management” requirement if the U.S. trustee or bankruptcy administrator determines there are inadequate educational programs available, or if the debtor is disabled or incapacitated or on active military duty in a combat zone.