It's Time To File: What To Know About Timing Issues And Chapter 7
Posted on: 30 March 2022
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Many considering filing for Chapter 7 bankruptcy may be curious about how long the process takes. That, however, is only one consideration when it comes to timing matters. Read on and find out what you should consider before you file, how long it takes to file, and when the process will be complete.
What to Consider Before You File
As soon as you begin thinking about Chapter 7, speak to a bankruptcy lawyer. Some issues may need to be resolved before you file, and they can take time. For example:
- You must have lived in your state for a certain length of time before you can file in that state. At times, you might have to put off filing for a few months to gain residency status.
- Your income must be below a certain level. The courts look back to the previous months and if your income is too high at the present, you might need to wait a few months for it to come down. However, if you cannot wait or don't expect any income changes, talk to your lawyer about using the means test to qualify for filing.
How Long Does It Take to File?
Gather the needed documents and fill out the paperwork your attorney asks you to provide them. They must know about all your debts, your assets, your income, and more. You will also need to take the first of two classes on credit counseling. The bankruptcy bundle will be filed in federal court and the process begins immediately after that.
How Long Does Bankruptcy Take?
In most cases, a normal bankruptcy takes five or six months. However, the COVID-19 situation has caused the bankruptcy courts to slow down in their processing. You may, consequently, be asked to participate in any bankruptcy meetings by Skye or Zoom rather than in person. Also, you should take the second of the required classes. In most cases, your creditor's meeting will take place a month or so after you file, and then a few months later you will receive the final discharge paperwork in the mail.
However, if any complications arise, you should add a month or more for each issue. Some potential issues include:
- Creditors objecting to the inclusion of a specific debt in the bankruptcy.
- The trustee scheduling a tour of your property to inspect your assets.
- The trustee uncovering transactions in the months prior to filing in which you sold, transferred or gave away assets.
To learn more, speak to a bankruptcy attorney.