How Long Does Bankruptcy Chapter 7 Take?

how long does bankruptcy chapter 7 take

How Long Does Bankruptcy Chapter 7 Take?

how long does bankruptcy chapter 7 takeIf you are here today because you are considering filing for bankruptcy, then we know one of the first things you want to ask is – How long does this process take?

You are filing for bankruptcy to get your financial freedom back, so it is natural to want to know how long this can take. Today, we are going to discuss some of the things that can affect the timeline as well as the average amount of time from filing to discharge of debts.

Please seek assistance from an Arizona bankruptcy attorney if you are thinking about filing for Chapter 7. If you make a mistake by trying to do this on your own, the bankruptcy process timeline could be significantly extended.

Average Bankruptcies

Anywhere from three to four months.

That is the answer you will find when you look around online about how long it takes to complete a Chapter 7 bankruptcy. That is from the time you file to the time you receive a discharge of your debts.

However, no two bankruptcies are the same. For more complex cases, the time could be longer. What are some reasons a bankruptcy could be extended longer than three to four months?

  • There are many assets involved.
  • The case involves high assets.
  • Creditors object to the discharge.

Why does it take three to four months? That seems a bit long.

We know that even three to four months can seem like a long time, especially when you are ready to start rebuilding. Consider that you or your attorney have a bunch of things to do during this period. This include:

  • Filling out paperwork and meeting deadlines
  • Contacting each and every creditor you have
  • Providing details of all of your assets
  • Meeting with creditors and the trustee

Do not be discouraged if this is taking longer than you expected. Chances are that it took years for you to get into the debt situation you are in now. A few more months is nothing if it means having all of that debt burden lifted off of your shoulders.

How Long On Your Record?

Most people want to know how long Chapter 7 stays on their credit report. They usually stay on there for 10 years, but do not be discouraged by that.

Most people are able to start rebuilding their credit very soon after the discharge of debts. In fact, you may start receiving credit card offers in the mail soon after discharge is complete. You may have to begin with a secured credit card (where you put a deposit as security), but it is not uncommon for people to see a 600-700 credit score within a year or so after filing for bankruptcy.

Please remember that Chapter 7 was your second chance and that you cannot file again for years. This means that you need to keep your spending and debt levels under control. Use this process as one big lesson about the importance of budgeting and living within your means.

*Please regularly check your credit report after you file for bankruptcy. Ensure that all discharged debts are taken off. If you see anything that is incorrect, you need to have it corrected as soon as possible.

What Your Attorney Will Do

Your attorney will do everything they can to make this process go as quickly as possible. There are complicated details and complex paperwork involved when filing. An Arizona bankruptcy attorney will ensure that everything is done correctly.

In a few months, you could be looking at your debts in the rear-view mirror. It is time to restart your financial life.

Click here to find out how to overcome debt in Arizona.