How Long is the Bankruptcy Timeline in Florida?
The bankruptcy timeline depends on a couple of factors. First, it depends on the chapter in which a bankruptcy is filed. A Chapter 13 bankruptcy lasts for three to five years, whereas a Chapter 7 bankruptcy timeline typically takes less than a year to complete. There are really two separate timelines that come out of a Chapter 7 case. The first is the timeline for the discharge – a consumer typically receives a discharge within three to five months. The discharge is the legal order that says that the debt liability is eliminated. The second timeline is the timeline to close the case. The timeline to close a chapter seven case depends on whether it is an “asset case” or a “no asset” case. In a no asset case, the case will close around the same time that the discharge is issued. In an asset case, the timeline can vary dramatically but is typically around a year.
The most essential truth is that bankruptcy offers a pathway for consumers to control and often eliminate their debts that is incomparable to any other alternative. The amount of debt that can be eliminated for a modest expense through bankruptcy is incomparable to debt consolidation or other debt negotiation alternatives. The myth about bankruptcy is that the bankruptcy benefit of eliminating or reorganizing your debts comes without any sacrifice on the part of the consumer. Particularly in chapter 7 cases, many consumers are under the impression that they get the benefit of the bankruptcy discharge without any commitment except for the filing fees. Chapter 7 is a trade-off; the bankruptcy benefit of the discharge is provided in exchange for agreeing to start over with limited assets. So, sometimes consumers have to commit some of their assets in order to obtain the bankruptcy benefit.
Filing for bankruptcy offers two principal benefits. First, bankruptcy will typically allow a consumer to stop the immediate problems that are being caused by debt collection, such as wage garnishment, collection lawsuits and pending foreclosures. Once those problems have been dealt with, the consumer can catch their breath and evaluate the options for addressing the debts.
The second benefit that comes from filing for bankruptcy is the actual resolution of the debts. The resolution varies slightly based on the chapter in which a bankruptcy is filed and how the debts are addressed through the bankruptcy, but in short, the debts can often be discharged or reorganized in a way that is going to allow the consumer a more affordable cost of living going forward
The qualifications for bankruptcy vary. For most consumers, there is an income qualification for chapter 7. For chapter 13, there are debt limitations, meaning that if you have too much debt, then you might not be able to qualify for chapter 13. Another option is chapter 11, which can offer other alternatives. Each individual’s circumstances have to be specifically reviewed to see which chapter of bankruptcy is going to be most appropriate for them.
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