Filing bankruptcy is a lengthy process and a weighty decision to make. Embarking on this journey will take some planning and preparation. First, you must decide under which Chapter to file. There are numerous Chapters of bankruptcy, but the most popular for individuals are Chapter 7 and Chapter 13.
How does Chapter 7 and Chapter 13 bankruptcy differ? Again, knowing your current financial position and having familiarity with your debt will decide which option is better for you. In short, Chapter 7 will eliminate all of your unsecured debt, while Chapter 13 will have you establish a repayment plan for your debt.
If ensuring a fast turnaround is important to you, your best option is meet with a bankruptcy lawyer in Stroudsburg, PA. JPP Law has the knowledge and experience necessary to help you through this difficult time.
Chapter 7 Filing Timeline
Chapter 7 bankruptcy is also known as liquidation bankruptcy. It’s the option to get rid of your debt entirely and quickly. With assistance from one of JPP Law’s Chapter 7 bankruptcy lawyers in Pennsylvania, filing for Chapter 7 bankruptcy usually takes between 4 and 6 months; on average, it takes five months from filing to discharge.
Your unsecured debt like credit cards, personal loans, payday loans, and medical bills will be completely wiped out, while your secured debt like mortgages and car notes will remain. Also, unsecured debt like student loans will stay until they are paid off.
Before filing for Chapter 7 bankruptcy, you are required to take a credit counseling course and have all of your documentation ready. Once your filing is underway, you will have to take a debtor education course on making sound financial decisions and avoiding future bankruptcies.
Necessary documentation includes the last two years of income taxes, past six months of pay stubs, three months’ worth of bank account statements, an appraisal of your assets, and a monthly budget. Then, the court will appoint you a trustee, and your trustee will meet with you in a meeting of creditors called a 341 meeting. At the 341 meeting, your court-appointed trustee will determine how much to pay your creditors.
Chapter 13 Filing Timeline
Chapter 13 bankruptcy is also known as a wage earner’s plan. The goal of Chapter 13 bankruptcy is to establish a manageable repayment plan. Usually, the terms of the program require repayment between 36 months and 60 months. Many times, individuals facing foreclosure will opt for Chapter 13 bankruptcy.
How long does it take to file bankruptcy under Chapter 13? With a JPP Law Chapter 13 bankruptcy lawyer in Pennsylvania, It can take as little as five months with an attorney; however, it could be much longer if filing on your own.
The main difference between Chapter 7 and Chapter 13 bankruptcy is that under Chapter 13 bankruptcy. A fraction of your unsecured debt will be repaid according to a court-determined repayment schedule. The remainder of your unsecured debt will be discharged once the payment plan is complete.
All debt collectors must cease their collection efforts during the 3-5 years of repayment. The repayment schedule acts like a consolidation loan, and all payments will be made to your court-appointed trustee, who will, in turn, distribute payments to creditors.
Contact Our Knowledge Team of Bankruptcy Attorneys
Why do you need a bankruptcy lawyer? The process of filing for bankruptcy is highly involved and often time-sensitive. Even the smallest delay or oversight could affect how quickly your bankruptcy goes into effect.
When you’re struggling to get out from under a mountain of debt, every second counts. The bankruptcy experts at JPP Law can help you get the debt relief you need sooner rather than later. Don’t wait; schedule an appointment with us today.