How Long Does It Take to Complete Bankruptcy?
Nobody likes filing for bankruptcy, and it is understandable that you would want it to be over with as quickly as possible. Your Chapter 7 bankruptcy may be completed in as little as three months, while a Chapter 13 bankruptcy repayment plan can take anywhere from three to five years to complete.
Other People Are Reading
-
Chapter 7 Bankruptcy
-
Chapter 7 bankruptcies can move very quickly. In some cases, your judge discharges your debts within 90 days of filing. If you have many assets to liquidate or your creditors raise objections to your bankruptcy, you may have to wait anywhere from four to six months for the completion of your case.
Chapter 13 Bankruptcy
-
Because a Chapter 13 bankruptcy is a repayment plan, it takes longer than the few months required for a Chapter 7 discharge. When you file for a Chapter 13 bankruptcy, you will develop a repayment plan for your debts. If your income is less than the median in your state, your repayment plan will usually last three years. If you make more than your state's median income, you'll spend about five years paying back certain debts.
-
Credit After Bankruptcy
-
Bankruptcies are public records, and the federal Fair Credit Reporting Act (FCRA) allows credit bureaus to keep a bankruptcy on your credit report for up to ten years. However, some credit bureaus remove Chapter 13 bankruptcy from your credit report after only seven years. Even though bankruptcy can seriously damage your credit, the older the bankruptcy, the less impact it has on your credit score.
Alternatives to Bankruptcy
-
Before you file for bankruptcy, investigate all of your alternatives. If you have a decent income and some cash, you may be able to settle your debts for less than you owe. While debt settlement can hurt your credit, the damage is less than what bankruptcy causes. Another option is to enter into a debt management plan that may let you pay down your debt over time, but without the stigma of bankruptcy.
-
