How Long Does It Take To Go Through A Chapter 7 Bankruptcy?

Once a case has been filed, it typically takes 30 to 40 days to have a 341 creditors meeting. If everything is acceptable to the trustee at the creditor’s meeting, then the court will issue a discharge 45 days after that meeting. From start to finish, the shortest amount of time that it could take is about 90 days.

Does The 341 Meeting Take Place For A Chapter 7 As Well Or Is It For Chapter 13 Only?

The creditors meeting takes place in chapter 7 bankruptcy case. A client will get a discharge from their debts about 45 days after the meeting.

How Long Does A Bankruptcy Stay On Someone’s Record?

A bankruptcy should stay on record for about seven years, but once a client gets a new credit card or a collateralized credit card, the effect of the bankruptcy on their credit report will diminish over time. Of course, this is dependent upon timely payment of the new bills. Because of this, it shouldn’t take a full seven years for someone to re-establish their credit.

How Soon Will I Be Able To Get A New Credit Card Or Car Loan Or A Mortgage?

Within about six months of having filed for bankruptcy, you may receive offers for a collateralized credit card or low limit credit card. Some clients get a car loan or a new car lease within a year and a half to two and a half years of their bankruptcy being discharged. I have seen clients get a mortgage to purchase a new home anywhere from two to three years after the bankruptcy discharge. So, a bankruptcy should not affect someone’s credit history for a full seven years.

What Is A Good Way For Someone To Rebuild Their Credit After A Bankruptcy?

The best way to rebuild credit after a bankruptcy is to get a non-collateralized credit card. If a person can only qualify for a collateralized credit card, then they’ll deposit the sum of the credit limit with the credit card issuer and then use the card like a regular credit card. After about six months to a year, their credit will be somewhat rehabilitated and the credit issuer will send back the initial deposit that the client made.

Is It Impossible To Move On From a Bankruptcy?

It’s not impossible to move on from a bankruptcy, and most people find that the process is easier and quicker than they expected. I certainly try to make it as painless as possible, and I try to get people back to the point where they can utilize their credit as soon as possible.

Should I Pay Back Any Family Or Friends I Owe Prior To Filing For Bankruptcy?

When someone goes to the 341 bankruptcy creditors meeting, the trustee will ask them whether or not they have paid any creditor within the last six months. If they have, then the trustee can basically move to recapture those funds as preferential payments to a certain creditor. A trustee wouldn’t want someone to pay a $1000 debt to a family member instead of to their credit card company. So, one of the jobs of the trustee is to make sure that all of the creditors are treated equally.

When Must I Complete The Pre-Bankruptcy Credit Course?

The pre-filing bankruptcy course can be done at any time within six months of filing the bankruptcy petition. Typically, I will prepare the petition and send it to the client for review. At that point, we will be pretty close to filing the actual petition, so I will advise them to take the pre-filing bankruptcy course. Once they take the pre-filing bankruptcy course, I will get a certificate that will need to be filed along with the bankruptcy petition in court.

How Long After Filing For Bankruptcy Will Creditors Stop Calling?

The creditors should stop calling immediately upon the filing. There might be some lag time due to the time it takes for the notices to be mailed from the bankruptcy court, but it should happen relatively quickly. If a particular creditor is really harassing a client of mine before the bankruptcy filing, then I will send them a letter stating that I’m representing the client in a bankruptcy and they are to cease and desist from contacting them regarding the debt.

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