How Long Does it Take to File for Chapter 7 Bankruptcy?

TRI Writer • October 15, 2019

If everything goes smoothly and the depending on the size of the case, a Chapter 7 bankruptcy case can be filed within a few hours to a few days and the debts discharged in approximately 100 days. The most important part of the process is preparing the documents required by the bankruptcy court. Once your bankruptcy attorney has prepared all the necessary forms, they will file your Chapter 7 bankruptcy petition with the bankruptcy court. The court will schedule a meeting of creditors approximately a month after your bankruptcy filing date. In most cases, the petitioner will receive a letter stating that their debts have been discharged or “erased” approximately two months after the meeting of the creditors.

How Long Does it Take to File for Chapter 7 Bankruptcy? If everything goes smoothly, the case can be filed and debts discharged within three months. In some cases, it may take longer. Your Chapter 7 bankruptcy case may require over three months if you fail to mail the trustee documents that are requested or if you fail to send the correct materials. It could also take longer if you do not complete the required bankruptcy/credit counseling course. It could also be delayed due to rare instances of litigation.

What Do I Do After My Bankruptcy Is Over? Almost all petitioners will find that they immediately start to receive new credit offers once they file for bankruptcy. Most credit offers received right after bankruptcy will have low limits, high-interest rates, high annual fees, and a required deposit to “secure” the credit. Always review the “terms” of the offer carefully before deciding to sign up for a new credit card or credit account after bankruptcy. The best place for most bankruptcy petitioners to start is by requesting a secured credit card through their bank. With a secured card, you deposit a specific amount of money in the bank, and the deposit acts as collateral for the “credit” card you are issued. The secured card is the best first step in post-bankruptcy credit repair because your on-time payment history will typically report on your credit. Also, remember to check your credit report for any mistakes regularly.

There is no shame in seeking a discharge of debt when unintended circumstances leave you struggling to care for your family. When you are out of choices and need help to release your family from chains of debt, don’t hesitate to get in touch with Kenneth C. Rannick P.C. , Tennessee, and Georgia bankruptcy attorney. We help good people through bad times.

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Subchapter 5 Bankruptcy: Unlocking New Possibilities for Tennessee Residents

January 30, 2024
Are you a Tennessee resident facing financial challenges and considering bankruptcy? If so, you may have heard about a relatively new option called Subchapter 5 bankruptcy. But what exactly is Subchapter 5 and how does it differ from traditional Chapter 11 bankruptcy? More importantly, what benefits does it offer to individuals and small businesses?  In this blog post, we will explore the world of Subchapter 5 bankruptcy and shed light on its advantages for Tennessee residents. Whether you're a struggling entrepreneur or an individual burdened by overwhelming debt, understanding the potential benefits of Subchapter 5 can help you make informed decisions about your financial future. What is Subchapter 5 Bankruptcy? Subchapter 5 is a relatively recent addition to the United States Bankruptcy Code, specifically designed to provide a streamlined and cost-effective bankruptcy process for small businesses and individuals. It was created as part of the Small Business Reorganization Act (SBRA) in 2019, with the aim of increasing accessibility to Chapter 11 bankruptcy relief. The Benefits of Subchapter 5 Bankruptcy Simplified Process: One of the key advantages of Subchapter 5 is its simplified and faster bankruptcy process. Unlike traditional Chapter 11 bankruptcy, which can be complex and costly, Subchapter 5 offers a more streamlined approach that is better suited for small businesses and individuals. Retention of Ownership: Under Subchapter 5, business owners have the opportunity to retain ownership and control of their company while developing a repayment plan. This allows for greater flexibility and the ability to restructure debts without losing ownership interests. Reduced Plan Requirements: Subchapter 5 eliminates certain stringent plan requirements that are typically associated with traditional Chapter 11 bankruptcy. This simplification of the plan process makes it more accessible to small businesses and individuals. Debt Repayment Plan: Subchapter 5 allows for the development of a debt repayment plan based on the individual's or small business's disposable income. This plan spans over three to five years, making it more manageable and achievable for debtors. Creditor-Friendly Approach: Subchapter 5 encourages creditor participation and collaboration, promoting consensual resolutions and a more amicable environment. This can lead to increased cooperation, reduced litigation costs, and ultimately, a more successful restructuring process. Subchapter 5 vs. Chapter 11 Bankruptcy: Understanding the Difference While both Subchapter 5 bankruptcy and traditional Chapter 11 bankruptcy share some similarities, there are significant differences between the two. The primary distinction lies in the complexity, cost, and requirements associated with each option. Subchapter 5 offers a more simplified and accessible bankruptcy process specifically tailored to the needs of small businesses and individuals, while Chapter 11 is better suited for larger businesses with more complex financial structures. If you're a Tennessee resident grappling with financial difficulties, Subchapter 5 bankruptcy may provide a viable solution. Its streamlined process, reduced plan requirements, and debtor-friendly approach make it an attractive option for small businesses and individuals seeking relief from overwhelming debt. Before making any decisions, it's essential to consult with a qualified bankruptcy attorney who can guide you through the process and help determine the best course of action for your specific situation. Remember, bankruptcy is not a one-size-fits-all solution, and the outcome will depend on various factors. However, understanding the potential benefits of Subchapter 5 bankruptcy can empower you to make informed decisions about your financial future. At Kenneth C. Rannick, P.C., we specialize in bankruptcy law and can provide the guidance and support you need during challenging times. Contact us today to schedule a consultation and explore your options for a fresh start. Take control of your financial future with Subchapter 5 bankruptcy. Let us help you navigate the path to a brighter tomorrow.

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