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 » Brandon Bankruptcy Lawyer Explains How Long Bankruptcy Usually Takes

Brandon Bankruptcy Lawyer Explains How Long Bankruptcy Usually Takes

Personal bankruptcy usually comes one of two ways: liquidation or restructuring. Each has a typical amount of time associated with it.

Chapter 7 Bankruptcy usually will take six months or so, depending on whether the creditors put up any objections. This type of bankruptcy requires a liquidation of some assets to pay off debts.

In these cases, people seeking bankruptcy will provide a comprehensive list of their debts and their assets and a representative of the court called the bankruptcy trustee will review the information.

“The trustee meets with creditors to come up with an amicable solution to the financial problems,” said Brandon bankruptcy attorney Reggie Osenton. “When all goes smoothly, that process will take between four and six months.”

Filing for Chapter 13 Bankruptcy protection is sometimes called the worker’s bankruptcy because it is structured for people who are still capable of making an income to pay off debts. In this case, the debts and assets are noted and the bankruptcy trustee works with creditors to create a payment plan.

“The advantage of Chapter 13 Bankruptcy filings is that clients usually to not have to liquidate any assets,” Osenton said. All payment plans will require that the petitioner have a job or a steady source of income to make the payments. “Chapter 13 is a better deal for a lot of people.”

A payment plan will have to be approved by the court because it is in everyone’s best interest that the payments get made. This means the new debt will be a number that is affordable for the borrower.

Once on a payment plan is designed by the bankruptcy trustee and approved by the creditors, it will take between three and five years to pay off. Once it gets paid off and assuming everything went smoothly, then the borrower exits bankruptcy with debts paid off.

To learn more visit, http://www.brandonlawoffice.com.

Posted on Thursday, July 5th, 2012 at 10:46 pm under News and Press.
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