How Long Do Bankruptcy Cases Take?
The length of time your bankruptcy case will take will depend on what type of bankruptcy you file, and the complexity of your situation. There are four different types of bankruptcy: Chapters 7 (liquidation), Chapter 11 (reorganization/rehabilitation), Chapter 12 (family farmer) and Chapter 13 (individual reorganization). Kelsch Law Firm represents clients in all chapters, except for Chapter 12.
Types Of Bankruptcies And Their Lengths
Generally, a person who files Chapter 7 bankruptcy will typically receive a discharge (forgiveness of pre-petition debts) within three to six months from date of filing. If he/she has nonexempt assets, it could take longer for the bankruptcy trustee to fully administer the assets. Chapter 11 and 13 bankruptcy cases will take quite a bit longer, typically between three to five years from the date of plan confirmation. A personal bankruptcy could take longer if there are objections to property exemptions or discharge, or if fraudulent transfers or preferential payments are pursued. Your attorney is usually able to provide a rough estimate of a timeline during the initial consult.
Businesses typically have more assets than individuals, so business bankruptcies will usually last longer. There is also quite a bit of pre-bankruptcy planning that precedes the filing of a business case, so this can extend the amount of time it takes to conclude the case.
The Time Investment Can Be Well Worth It
Deciding whether to file bankruptcy is always difficult, but it could be the life preserver needed to prevent you from drowning in a sea of debt. A bankruptcy lawyer can give you an approximate estimate of how long your bankruptcy case will last and help you decide whether or not it is the right option for you.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
This website features educational information based on general legal principles in Minnesota. Specific legal advice is contingent upon the unique facts of each case. Therefore, you should not rely only on this information for your particular legal issue. Contact an attorney to obtain advice specific to your legal situation.