If you have an emergency situation, our firm can file a bankruptcy for you within 24 hours. However, we do not recommend filing bankruptcy that quickly unless it is absolutely necessary. A few examples would be to stop a foreclosure sale or to prevent a vehicle repossession.
If you are not in an emergency filing situation, a bankruptcy typically can be filed in about 30-45 days, depending upon how quickly you would like to move forward. We cater to your needs, so if you would like to file more quickly, we can certainly assist with that.
The answer depends upon a few factors. Primarily, they are:
- How quickly you can deliver documentation to your bankruptcy attorney
- Whether you are choosing a Chapter 7 or a Chapter 13
- Reasons which may exist to delay your filing
Phase I – Gathering Information
Working with our firm is easy. We simplify the process as much as possible and do our best to minimize the documentation you need to provide for filing. You will have your choice between completing an online questionnaire or providing info over the telephone. Documentation can be uploaded electronically or delivered to the office in paper format. While every case is unique, you generally need to provide proof of ID, two years of tax returns, six months of bank statements, and registration cards for vehicles.
Chapter 7 or Chapter 13
Chapter 7 bankruptcy results in a discharge roughly 120 days after the filing of the bankruptcy. Chapter 13 bankruptcy is a years-long bankruptcy where you make a monthly payment for 36 or 60 months. You receive a discharge after making your last payment. Your bankruptcy attorney will be able to help you decide between Chapter 7 and Chapter 13. Generally speaking, you must pass the Means Test to qualify for Chapter 7. Most clients who choose Chapter 13 do so because of one of the following:
- Too much income
- Too many assets
- A desire to ‘catch up’ on a mortgage or car loan
After a free phone consultation, our office can typically predict for you whether you will need to file Chapter 7 or Chapter 13. From there, you can decide which route is best for you. If neither of the two options is appealing, we can always discuss the option of pursuing debt settlement instead of bankruptcy.
Phase II – Reviewing Your Petition
With the information we gather in Phase I, we prepare a rough draft of your bankruptcy petition. The bankruptcy petition is a document meant to disclose your financial picture to the bankruptcy court. The key to a successful bankruptcy filing is disclosure. We will provide you with a draft of the petition and review it with you for accuracy and completeness.
Phase III – Signing and Filing The Petition
The bankruptcy petition must be signed prior to being filed. Fortunately, the Charlotte bankruptcy court is allowing electronic signatures and electronic filing. This makes the process quite seamless and easy. Once the petition is filed, the court will assign a bankruptcy trustee to the file. The trustee will review your petition prior to the 341 meeting.
Phase IV – The 341 Meeting
The 341 meeting is a short meeting between you, us, and the bankruptcy trustee. These hearings are held either on the phone or in person. The trustee will ask you a few questions about the petition they have reviewed. The trustee will also ask if there are any changes that need to be disclosed. You may be surprised to know that creditors very rarely attend the 341 meeting.
Phase V – Discharge
After the 341 meeting, there is a necessary waiting period meant to give creditors time to file their claims with the court. Once the deadline for this filing passes, the trustee will close your case and the bankruptcy court will enter your discharge. This is the true end of the bankruptcy and the final step in the process.
Reasons To Wait To File Bankruptcy
While the bankruptcy rules are very powerful in favor of the debtor, sometimes it makes sense to wait to file your bankruptcy. Usually, these waiting times are well worth it, and relatively easy to spot if you’ve been honest with your bankruptcy attorney. Because the bankruptcy rules look at a specific window of time regarding your financial activity, waiting an extra month or two to file can sometimes make the difference between a smooth and easy bankruptcy, or a rocky road. Here are a few reasons your bankruptcy attorney may recommend you wait to file:
- Too much income in the past 6 months
- A transfer to a friend or family member in the past year
- A large payment to a creditor in the past 90 days
- A new loan is taken out in the past 90 days
- Credit card use in the last 90 days beyond day-to-day purchases (Luxury items, etc.)
Hearing that you need to wait to file your bankruptcy may be frustrating. It certainly changes the answer to the question “How long does bankruptcy take?” if your attorney is recommending waiting, for the sole purpose of letting a financial item ‘drop off’ of your timeline. However, taking the advice of your bankruptcy attorney prior to filing will pay off for you in the end.
Speak With A Charlotte Bankruptcy Lawyer Today
Considering filing bankruptcy? Give us a call. A short conversation can restore your belief that there are brighter financial times ahead. We love answering questions and we are here to help. You can reach us at 704.749.7747 or click HERE to request a call.