If you are thinking of filing for bankruptcy, either a Chapter 13 or a Chapter 7, the best thing to do is to go into a consultation with an experienced Ingleside bankruptcy attorney. Make sure that the lawyer specializes in bankruptcy, and fully disclose and be honest with the attorney about all of the information that the attorney is asking for. This is the best way for a bankruptcy lawyer to make a sound legal decision and to give that person sound legal advice in whether or not a Chapter 13 or a Chapter 7 bankruptcy is in the best interest of that person.
How long will bankruptcy take? Generally speaking, a Chapter 7 bankruptcy will be close in about three to four months after the date of filing the bankruptcy petition. There are other things that may delay a Chapter 7 bankruptcy which could extend the time of three to four months to maybe longer. However, these are rare circumstances and generally a Chapter 7 should close in about three to four months. It basically has to make it through the typical bankruptcy process.
A Chapter 13 case is a little different because it is a repayment plan that is going to last for 36 to 60 months. 36 months, or three years, is the minimum requirement for a Chapter 13. However, it can extend up and until 60 months, which is roughly five years. This is the actual time it takes after the date of filing. However, the time itself may be a little bit longer from the day you consult your attorney. This depends on how quickly the attorney’s fees and the court costs are paid, and also how long it takes for a person to provide the necessary information needed to file bankruptcy.
That information that is needed to file bankruptcy is, one, your pay stubs and paychecks for roughly two to six months of the prior months before filing for bankruptcy. Also, the person will need, two, a transcript or proof of the federal income taxes for the previous year in a Chapter 7 bankruptcy, and for a Chapter 13 bankruptcy, the previous four years prior to filing a bankruptcy. A person will also need to complete what is called the credit counseling class for the bankruptcy court. This class must be completed before a person can file a bankruptcy and generally can be taken online, over the phone or in an actual classroom setting from a provider. This is mandates by Federal law and not by Illinois bankruptcy law.