How long is the bankruptcy process?
The time that it can take for the bankruptcy process to be completed can vary considerably. The time to complete the process depends very much on the type of bankruptcy the individual or company wishes to declare and how much time it will take the declaring entity to gather the information that is needed to substantiate the assets and debts. Most individuals and couples file for Chapters 7 or 13, the type of filing changes the process considerably, all of which impacts the time to completion.
Chapter 7 bankruptcies in Schaumburg are the most common form of bankruptcy declared; it is the form most often used when the individual has very few assets to protect. In most cases, the individual filing for bankruptcy engages the services of a lawyer to help in filing all the necessary papers and documents to substantiate the claim. Invariably, the most time is spent in gathering all the information that the court demands. When the person filing for bankruptcy in Schaumburg owes money to a number of different creditors and one or more of these creditors have sold the debt at discount to a collection agency it will challenge the best accountant to determine who owes who, what.
Part of the declaration is a statement of assets, income and historic tax returns and any current tax information. If the individual who is declaring Chapter 7 bankruptcy has not kept good records over time, it will certainly add to the time to process the claim. The lawyer will try to track down any agencies that have purchased the debt so that the bankruptcy petition can proceed.
Once all the documents have been gathered it then takes about a couple of months or perhaps a little less for a court date to be established. Once the individual is in court and all the paperwork is found to be in order, the court will officially declare the person bankrupt. When this happens, most debts simply disappear however there are some debts that must e paid; these include student loans and any debt to the federal government including taxes. If the bankrupt receives any future calls or attempts to recover the debt, the lawyer will handle this harassment.