Chapter 7 Bankruptcy: How Long The Process Takes To Complete

If you're considering filing Chapter 7 Bankruptcy, you're probably wondering how long the process will take - after all, you want to get on with your life and make a fresh start, so you're in a hurry to get the stress and worry of debt behind you as quickly as possible.

If you're filing a ?no asset? case - that is, all of your assets are exempt under state Bankruptcy laws - the filing can be completed in a rather short period of time... often four to six months. The trustee will file a ?no asset report? after meeting with your creditors and making sure that you provided reliable information for the filing. It's important that you provide accurate information during the information-gathering and filing process, because mistakes or inaccuracies can significantly delay the court's Final Decree.

After the ?no asset report? is filed, your creditors will be given the chance to file objections to the discharge of your case. Objections can also lengthen the time it takes to receive a Discharge and Final Decree, but in ?no asset? cases, objections are relatively rare.

There are a few other things that can affect how long a Chapter 7 Bankruptcy takes. Redemptions and reaffirmations should be taken care of as soon as possible after the no asset report is filed; likewise, the financial management course should be completed in a timely manner to avoid delays... or worse, a Final Decree without a discharge from your financial obligations.

If non-exempt assets are involved, it is difficult to gauge how long the Chapter 7 will take. If there are no issues raised against you, you can receive a Discharge (which is what most people are really after), but the Final Decree cannot be issued until the trustee has determined the disbursement of your assets. Often, this process can take many months, or even years.

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