How long does personal bankruptcy take?

Let’s start first with Chapter 7 bankruptcy. If you filed a bankruptcy case today, then your Meeting of Creditors would take place in approximately 30-45 days. The law states that the case must remain open for 60 days from the date of the Meeting of Creditors. If you filed a Chapter 7 petition then on January lst, your Meeting would be between February lst and 15th, and the case would have to remain open until at least April lst or 15th, although the Clerk of Court might not formally close the case until a few weeks or a month thereafter. Provided that you obtained your Financial Education class in a timely manner (within 45 days of your Meeting of Creditors), then the Clerk of Court would issue your Discharge Order to signify that the case was closed.

In terms of Chapter 13 bankruptcy, the period of time is obviously longer, because the purpose of Chapter 13 is to reorganize your financial affairs by repaying certain debts. Some individuals who are below the “median income guideline” are permitted to exit Chapter 13 bankruptcy in as few as 36 months. The majority of filers now must propose 60 month plans however. At the end of the payment plan, the Chapter 13 Trustee reviews all of the claims filed in the case and prepares a report to the Court before the discharge order may be granted.

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