Chapter 7 Bankruptcy | How Long Does It Take?

Overview of Chapter 7 bankruptcy

A lot of people have asked, “What is Chapter 7 bankruptcy?” Chapter 7 refers to a type of bankruptcy, commonly known as “liquidation” bankruptcy where all of your debts will be discharged (with certain exceptions) and any unexempt assets will be sold by the Chapter 7 Trustee for the benefit of your creditors.

Will Chapter 7 bankruptcy hurt my credit?

The answer to this question is “Yes.” In general, Chapter 7 will hurt your credit score. Chapter 7 bankruptcy will be reported on your credit report for up to 10 years. This does not mean you’ll wear a Scarlet letter around your neck for 10 years or have to live without credit, but it does mean you’d have to adjust to some constraints on your ability to borrow money. It can take 5 years or more before you can qualify for secured loans such as mortgages or car loans.

How long does Chapter 7 bankruptcy process take?

In general, the process usually takes about 3-4 months. You are required to complete government-approved credit counseling before filing the case. The credit counseling session is a short online class that takes anywhere from 40 minutes to 1 hour. After filing, you are required to complete another class called Financial Management Course (also done online).

After your case has been filed, there will be an “Automatic Stay” which forbids your creditors from making any attempts to collect on your debt while the bankruptcy process takes place. Then, 30-45 days later, you will need to attend a Meeting of Creditors, which will take about 10 minutes. This meeting is with the bankruptcy Trustee and generally, held in a large conference room. If no objections are raised, 60 days after that your Order of Discharge will be entered, which means your debts will be forgiven. It’s important to remember that certain debts, including child support, recent taxes, and student loans will remain. – Ready For Zero

Specializing in bankruptcy and foreclosure law for over 20 years. Call attorney David Pinkston for a free consultation today: 904.306.5791. #FloridaBankruptcyAttorney #FloridaBankruptcy

If you are thinking about #bankruptcy or #foreclosure in the Jacksonville, Florida area, you should call attorney David Pinkston. David is very experienced with all aspects of bankruptcy law yet very personable and easy to talk to. Call Us Today! 904.306.5791