Since bankruptcy is supposed to give you a fresh financial start, you may be wondering exactly when you get that fresh start. Here's how long you can expect a bankruptcy to last.
How Much Time Does it Take to File For Bankruptcy?
It depends on what kind of bankruptcy you file. Some bankruptcy filings take days, while others can take weeks or months. In rare cases, it may take a few years to file for bankruptcy.
Exactly how long it takes will depend on how complex your case is. This can include how much debt you have and what kind of debt you have.
How Long Does it Take to Complete a Chapter 13 Bankruptcy?
When you choose Chapter 13 bankruptcy, you go on a payment plan. The payment plan usually lasts for several years.
You must complete the payment plan before you can complete your bankruptcy. If you miss payments, you may not be able to complete your bankruptcy. Once you make your last payment, you can go back to court and ask the judge to officially end your bankruptcy.
When Can You Get a New Loan After a Bankruptcy?
You can't get a new loan until you finish your bankruptcy. That's because your lender wants to make sure you can't include that loan in bankruptcy. Your other lenders also don't want you taking on new loans when they haven't been paid yet.
After your bankruptcy, it depends on the lender. Technically, you can get a loan the day after your bankruptcy. However, lenders want to wait to see that your financial situation is improving. Some lenders might lend to you after a few months, while others may make you wait years.
When Can You File for Bankruptcy Again?
It takes years to be able to file for bankruptcy after you've already filed for bankruptcy. Exactly how long depends on what bankruptcy you used, the amount you had discharged, and your reason for bankruptcy.
The point of bankruptcy is to give you a one-time reset. So the law doesn't want you to be able to file for bankruptcy over and over again. In some cases, it's up to the judge's discretion how soon you can file for bankruptcy. So if you want to file for bankruptcy again, you'll need to show a good cause, such as a sudden illness.
To learn more about this topic, contact a local Chapter 13 bankruptcy lawyer today.