Individuals often turn to personal bankruptcy in emergency circumstances. After unexpected medical bills, sudden job loss and other hardships, they can file for bankruptcy to address their financial challenges.
Depending on the situation, bankruptcy can theoretically take years to complete. Those struggling to pay their mortgages or at risk of creditor lawsuits may worry that they don’t have the time to wait for bankruptcy.
How long does it take to complete a personal bankruptcy filing?
Immediate protection is available
Those pursuing personal bankruptcy don’t need to complete the process to receive financial relief. The courts grant an automatic stay that takes effect the same day as the initial submission of paperwork. Filers can halt collection calls and request the dismissal of pending creditor lawsuits immediately after they file paperwork. The automatic stay offers time to strategize.
The timeline for a discharge varies drastically
The amount of time required to secure a discharge depends on the type of bankruptcy pursued. Frequently, people can complete a Chapter 7 bankruptcy in approximately six months. Some cases take longer, and others are faster.
Chapter 13 bankruptcy tends to be a lengthier option. Filers have to make between three and five years of payments before they are eligible for a discharge. Factors, including the amount of debt they have and their income, influence the repayment plan and how long it lasts.
Bankruptcy can take months or years, but filers have same-day protection from aggressive collection efforts in most cases. Reviewing current financial challenges with a legal professional can help people determine if personal bankruptcy is the right solution for their particular circumstances.
