Do you feel like you’re drowning in an ocean of debt? You’re not alone. You can see in real-time how fast the national debt is rising.
If you’re floundering, then there is hope. Our nation’s bankruptcy laws are in place to help protect you.
Despite that, you might feel like you need immediate relief. So, how long does it take to file bankruptcy? How soon will you begin to feel financial relief? Read on to learn everything you need to know about the phases of a bankruptcy claim.
Phase One: Analyzing Your Finances
So, you’re in dire financial straits. You already know this, but you need to make sure you’ve covered all your bases. You need to verify that you have no other choice than to file for bankruptcy.
That means you’ll need to meet with a counselor before you file.
Often, you’ll meet with an attorney first who will recommend a counselor to you. The whole process can take anywhere from a few days to three weeks. The length of this phase depends on the availability of your financial counselor.
A good lawyer makes all the difference. FCW Law Firm specializes in bankruptcy cases, so check them out if you’re in need.
Phase Two: Filing For Bankruptcy
Next, you’ll need to fill out all the official bankruptcy paperwork. An attorney can help you ensure you complete everything accurately the first time. Then, you’ll need to submit your petition to your local court.
This phase should only take a few days. This is especially true if you’ve already consulted with an attorney in phase one.
Phase Three: Automatic Stay and Creditor Meeting
Once the court receives your petition, they’ll immediately issue an automatic stay. That means your creditors can’t contact you about your debt until the case is over. You can finally enjoy a sigh of relief.
You’ll also get scheduled for a creditor’s meeting. The meeting will only take about an hour, but it can take weeks to get an appointment. Here, you’ll either get approved for bankruptcy or get set up on a payment plan.
Phase Four: Mandatory Education
There’s only one thing left to do after your meeting — get educated. You must attend a debtor education course before your debt gets discharged.
You can take the classes online. It will only take about two hours to do.
Phase Five: Discharging Your Debt
Finally, the moment you’ve been waiting for. In this phase, your debts will get discharged for good! If you’re on a payment plan, you’ll need to complete it. On average, this will take 3-5 years.
Prepare to get a Notice of Discharge letter in the mail.
How Long Does It Take To File Bankruptcy?
Are you looking to file bankruptcy in a hurry? If so, then you’ll likely get your hopes dashed. On average, it takes about five months to complete the process. Payment plans take about 3-5 years.
Considering the worldwide pandemic, it’s likely to take even longer right now.
If you’re looking to streamline the process, consider hiring a lawyer. An attorney will ensure your bankruptcy case goes as fast as possible.
Are you looking for more financial advice and tips to help you get through 2020? If so, then you’re in luck! Keep browsing through our finance section for more of our latest content.