When you are in an overwhelming amount of debt, you may find the bankruptcy process to be the only viable option left to help you settle your finances. However, you may be hesitant to pursue this option because you may assume it will be tedious, stressful, and time-consuming. As such, the following blog explores the reality of filing for bankruptcy, including how long this process can take, so you can understand what to expect and the importance of working with Franklin County bankruptcy lawyers to help you through this matter.
How Long Will the Bankruptcy Process Take Once I File?
If you are considering filing for bankruptcy in Ohio, it’s imperative to understand how long this process can take. In general, it will depend on the type of bankruptcy you decide to file.
If you are interested in pursuing Chapter 7 bankruptcy, this process will generally take around six months to complete. This is one of the most straightforward bankruptcy options, as it requires the liquidation of your assets to repay outstanding debts. While this is generally the most common option, it’s important to understand that there is an eligibility requirement. In order to file Chapter 7, you must pass what’s known as the means test. This essentially compares your average annual income to others of similar sizes in Ohio, and if you make below the average income, you’ll be eligible. If your income is too high, you may be required to pursue Chapter 13.
Chapter 13 bankruptcy is an option for those who earn too much to file Chapter 7 or are interested in protecting certain assets, as this is a repayment-based chapter. Essentially, all your debts will be consolidated, which you will then pay in a monthly installment to the trustee assigned to your case. The trustee will then be responsible for distributing the payments to your creditors. This process will last three or five years, based on the circumstances of your case. Generally, your income will be taken into account to determine how long your repayment plan will last.
What Can I Do to Prepare?
If you are ready to file for bankruptcy, it’s imperative to understand the steps you can take to navigate this process with ease. Generally, one of the most important things you should do before you declare is to gather the necessary documents you’ll need to file.
Next, you’ll need to ensure you complete the required consumer credit counseling courses. These are mandatory classes all filers must complete to be eligible to file for bankruptcy. Essentially, this is a required meeting in which you will discuss your finances with a credit counselor who can help you explore alternative debt relief options to help you avoid bankruptcy. However, you should note that just because you may have an alternate plan does not mean you are required to follow it. These courses must be completed within 180 days of filing for bankruptcy.
As you can see, bankruptcy can be an overwhelming process with a number of incredibly important considerations to make. If you are ready to pursue this process, it’s imperative to understand that working with an experienced attorney is in your best interest. At Cousino & Weinzimmer LLC, our firm is ready to guide you through this process from the moment you file to when your final debt has been discharged. Contact us today to learn how we can represent you.
