How Long Does A Chapter 7 Bankruptcy Typically Take?
The typical timeframe for a regular Chapter 7 bankruptcy is about 90 days. A hearing date will be assigned by the bankruptcy court judge and will take place 30 to 45 days after the case is filed. Depending on the jurisdiction, an individual could be assigned to any number of Chapter 7 trustees. There will be a period of 60 days from the time of the hearing until the discharge. Most people consider the discharge to be the end of the case, even though the case will officially close a few weeks after the discharge.
If I Am Not Eligible For Chapter 7 Bankruptcy, What Are My Other Options?
When someone is ineligible for a Chapter 7 bankruptcy, the first thing they should consider is a Chapter 13 bankruptcy. The benefits of bankruptcy far outweigh other options, such as debt consolidation or debt settlement. In my opinion, bankruptcy should always be the first option considered and evaluated because it will have the best financial outcome for every single debtor. If someone does not qualify for a Chapter 7 bankruptcy based on their income, then we would try to minimize their budget and take the amount of money that would be left over to fund a Chapter 13 plan. The benefit of this is that they may only have to pay their creditors five cents on the dollar rather than the entire amount or half of the amount through debt settlement. Debtors have an incentive to look at this because it will provide the best financial outcome. Individuals or corporations might also consider filing for a Chapter 11 bankruptcy.
What Are The Main Differences Between Chapter 7 And Chapter 13 Bankruptcy?
The main difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy is the repayment plan associated with each. Many people are confused by the repayment plans because they believe they will have to repay their creditors. In many cases, especially in the district of New Jersey, an individual is not required to pay any money in a Chapter 13 toward unsecured debt. In that case, an individual would file a Chapter 13 bankruptcy in order to pay arrears on a mortgage over time rather than all at once out of pocket.
They would receive the same benefit as they would in a Chapter 7 because they would have relieved themselves of the unsecured debt while paying zero cents on the dollar. Other jurisdictions may require five cents on the dollar. In fact, the Western District of New York requires that at least five cents on the dollar go toward unsecured creditors. If a debtor lives in a jurisdiction that requires this, then they may want to file a Chapter 7 bankruptcy and follow it up with a Chapter 13 bankruptcy. If someone is upside down on their property and have two liens against it, and if the value of the property is less than the first lien, then the second lien could be avoided or wiped away in a Chapter 13 bankruptcy. This would be a huge benefit and has been done many times since the financial collapse that occurred in 2008 and 2009.
What Sets Your Firm Apart In Handling Chapter 7 Bankruptcy Cases?
My firm is set apart from the rest due to the level of experience we have in handling Chapter 7 bankruptcy cases. As a staff attorney for a Chapter 13 trustee, I processed thousands upon thousands of cases, which allowed me to learn the tricks of the trade and gain insight on how certain judges will handle different matters. I handled and prepared 300 cases for court every week. This experience allowed me the opportunity to see many different aspects of this type of law, and allows me to guide my clients through the process while making them feel comfortable and relaxed. My clients end up very happy with the outcomes they receive because they never feel left in the dark along the way.
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