The Bankruptcy Timeline

Bankruptcy Lawyer in Irvine

Before filing for bankruptcy it is necessary to meet with an experienced bankruptcy lawyer to establish the person's qualifications.  If they have ever filed for bankruptcy before, there are a minimum number of years that must pass before they can file again.  The person filing must be a resident of California for at least 90 days before filing.  They must also complete an approved credit counseling program within 180 days prior to their filing.  Once these steps have been done, the person can then submit their bankruptcy petition and pay the necessary filing fees.  Each individual will follow the timeline for the type of bankruptcy they are doing.  Chapter 7 "debt elimination" can be completed in four to six months.  Chapter 13 "debt repayment" can take between 3 to 5 years.  For more details on qualifying for these different programs, contact an Irvine bankruptcy attorney at the Law Offices of Arthur R. Hausmann.

Both types of bankruptcy require a statement of all one's assets, liabilities and income. Mr. Hausmann can help review and prepare the financial records necessary to submit to the court and explain the rest of the timeline that will need to be followed.  A person with high debts and few assets should qualify for Chapter 7 bankruptcy.  Someone who owns property and has a regular income should qualify for Chapter 13 bankruptcy.  Once bankruptcy has been filed, a "stay" order is sent to all creditors and collection agencies.  This ends all further communications to the debtor.

Bankruptcy Lawyer in Irvine

Once the petition is filed the bankruptcy timeline continues in this fashion:

• 15 days - Chapter 13 plan of repayment submitted.
• 30 to 45 - The petitioner must attend a mandatory formal hearing with their creditors.  Failure to attend will cause the bankruptcy proceedings to be cancelled by the court.
• 30 days - Chapter 13 repayment of debts begins.
• 4 to 6 months - Chapter 7, after any non-exempt assets have been sold to repay outstanding debt, all remaining debt will be completely discharged (eliminated) and the bankruptcy is finalized.
• 3 to 5 years - Chapter 13 - if schedule of repayments is successfully completed and debts discharged, the bankruptcy is finalized.

Contact an Irvine Bankruptcy Attorney for more information on how long bankruptcy can take and how the bankruptcy timeline works.