The length of bankruptcy proceedings can vary significantly, influenced by several key factors, such as the specific type of bankruptcy being filed and the intricacy of the individual case. In the blog post below, we will explore these timelines in greater depth, offering a better understanding of what to expect during the process and how these timelines may directly impact your financial situation and decision-making.
A Basic Overview of the Bankruptcy Timelines in Georgia
Anyone considering filing for bankruptcy in Georgia should be well prepared for the associated timelines and processes. Although many factors can influence these timelines, in general, the length of the bankruptcy process will depend on the following:
Chapter 7 Bankruptcy
The process of filing for Chapter 7 bankruptcy typically takes three to six months but can sometimes be even longer. Chapter 7 is often called “liquidation” bankruptcy because it involves selling non-exempt assets to pay off creditors. However, many individuals qualify for exemptions that allow them to keep most of their property. The process concludes once the court approves the payments made by the bankruptcy trustee and officially discharges the debt.
Chapter 13 Bankruptcy
Filing for Chapter 13 bankruptcy usually requires a longer commitment, often lasting five years. This type of bankruptcy is designed for individuals with a regular income who wish to consolidate their debts and create a repayment plan. Chapter 13 allows debtors to keep their property while they pay off their debts over time, typically within a three—to five-year payment plan. The process is only finalized after all required payments are made and the court formally recognizes the completion of the payment plan.
Credit Report
Individuals also need to be aware that filing for bankruptcy will have a lasting impact on their credit reports. A Chapter 7 bankruptcy will remain on a person’s credit report for ten years, which can impact a person’s ability to obtain new credit during that time. On the other hand, those who file for Chapter 13 bankruptcy will usually see the bankruptcy mentioned on their credit report fade away within about seven years.
Given these timelines and implications, potential filers should consult with a qualified bankruptcy attorney who can provide guidance specific to their financial situation, help navigate the complexities of the filing process, and assist in developing a strategy that best suits their needs. Understanding these details can help individuals make more informed decisions as they work toward financial recovery.
What Issues Can Cause Delays in the Bankruptcy Process
In Georgia, one of the primary reasons for bankruptcy proceedings’ delays is the court’s suspicion that the debtor intentionally withheld relevant information during the filing process. When individuals try to hide assets or important financial information, the court is alerted, which can ultimately lead to the dismissal of the bankruptcy application.
In addition, factors such as elevated income, self-employment, and unprotected assets can also cause a Chapter 7 case to remain open for longer than six months. Due to these complexities, most individuals seek the help of an experienced bankruptcy attorney to handle their filings. These legal professionals can offer critical support throughout the process, ensuring that all necessary documents are prepared and filed accurately and on time. They can also help debtors understand their rights and responsibilities, making the complicated bankruptcy landscape easier to handle.
Contact Duncan & Brow Today To Learn More
For further information about the bankruptcy process in Georgia or to explore these timelines further, reach out to Duncan & Brow today to consult with our experienced Georgia bankruptcy legal team and address any questions you may have.
