6 Factors Affecting the Timeline of a Chapter 7 Bankruptcy
Probably the third question on everyone’s mind when they consider filing Las Vegas bankruptcy is, “How long will it take?” The first two questions are about the cost of bankruptcy (answer: usually a lot less than living with unpayable debts) and whether the debtor is eligible (answer: probably, depends on the circumstances). The question about time, though, is a little more complicated than the eligibility question because there are a few factors that can extend or hasten a debtor’s bankruptcy in Las Vegas.
- To begin with, there are two timelines that debtors should be aware of: the time between filing and receiving a discharge and the time between filing and when the case closes. The discharge timeline is usually sixty days from the section 341 meeting of the creditors.
- However, if one of the creditors files an objection to the bankruptcy, then the amount of time between the meeting and the discharge can extend quite considerably. Fortunately, most debtors do not face any objections from their creditors. All told, the time between filing and discharge can be as little as 90 days.
- Many debtors file no income/no asset bankruptcies, which means there’s nothing for the bankruptcy trustee to liquidate and reimburse the creditors. In asset bankruptcies, however, the timeline between filing and closure can be quite long.
- Most of the time, debtors’ assets are protected by exemptions or can be shielded by reaffirmation agreements, so the asset case isn’t much of an issue. When this happens, the case is usually closed shortly after the discharge.
- For cases where the assets cannot be so easily exempted, especially when small business assets or real estate are involved, the case might be open for years.
- Another factor that can extend a bankruptcy is if the debtor is in foreclosure. Usually, this won’t delay cases that much, and in many situations, debtors aren’t even seeking a discharge and just want to use the automatic stay so they can explore their options.
Bankruptcy cases are usually fairly similar in character, but it takes an experienced bankruptcy lawyer to ensure the process goes smoothly and adapt to problems that might arise.
For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Freedom Law Firm Las Vegas bankruptcy attorney for a free initial consultation. Call us at 1-702-803-9251 to set up your free consultation.