Depending on your particular debt situation and the type of bankruptcy you will be claiming, it can take as little as four months or up to five years to complete. While this may sound like a vast timeline, each type of bankruptcy has its own set of rules that can determine how long the process will take. Here’s what you need to know:
How Long Will Chapter 7 Bankruptcy Take?
Chapter 7, also known as liquidation bankruptcy, is typically filed for those who have a high amount of unsecured debts.
Depending on your current debt situation, it’s necessary to take the “means test” to determine if you are eligible to apply for Chapter 7 bankruptcy. The “means test” is essential to determine if you cannot afford to repay your debt. Chapter 7 bankruptcy is the quickest way to resolve unsecured debts — meaning debts that are not attached to a form of collateral.
Chapter 7 bankruptcy can relieve the following types of debt:
- Credit card debt
- Medical debt
- Personal loans
- Payday advances
How Long Will Chapter 13 Bankruptcy Take?
Chapter 13 is typically filed for those who want to keep certain assets. Chapter 13 bankruptcy will allow you to restructure your debt into a payment plan that can last anywhere from three to five years. Chapter 13 is a viable option for relieving the following debt situations:
- Save your home from foreclosure
- Keep assets that would otherwise be exposed through Chapter 7
- Relieve certain tax debts
- Save your vehicle from repossession
Contact Our Los Angeles Bankruptcy Attorney Today!
If you are thinking about filing for bankruptcy but are unsure about which bankruptcy chapter is right for you, we can help. Wadhwani & Shanfeld is in your corner and wants to guide you in the right direction towards financial freedom.
Schedule a virtual free consultation with our Los Angeles bankruptcy attorneys today at (800) 996-9932 or complete our online contact form.