The time it takes for one to file bankruptcy and have one’s debts discharged varies greatly. It depends upon what type of bankruptcy one intends to file, and also how quickly one can gather together information about income, and all one’s debts. Most private individuals file either Chapter 7 or Chapter 13 bankruptcy. The type of filing greatly changes the bankruptcy process.

Chapter 7 bankruptcy is the most frequent proceeding, and is usually filed when one doesn’t have a large number of assets one wishes to protect. Generally, one uses a lawyer who specializes in bankruptcy to help file all the papers required. The greatest time consumption factor when one is preparing to file Chapter 7 bankruptcy is gathering all the required information for the form. If a person owes money to numerous creditors, and these creditors have sold their accounts to collection agencies, it may be challenging to figure out exactly to whom one owes money.

Usually, one must also provide statements about income, any assets, and tax reports as part of Chapter 7 bankruptcy. If a person has not kept meticulous records of income or debt, it can be challenging to find out all this information. A lawyer may do some of the legwork by tracking down parties who have purchased one’s debt. All this information needs to be gathered prior to filing, when possible, so the bankruptcy is declared without complications.

Usually, once the bankruptcy papers are officially filed, it takes a month or two, depending upon the courts to set a date at which one will appear. At the time of the court date, providing all papers are in order, the court will declare one bankrupt. This is then the end of most but not all debts, like student loans. At minimum, Chapter 7 bankruptcy takes about a month, and often several months. However, once one hires a lawyer, any calls from creditors can be referred to the lawyer, which can end harassment by creditors.

Chapter 13 bankruptcy is meant to protect a person with a high number of assets that go beyond normal living requirements. Instead of discharging debts, Chapter 13 works with creditors to reduce debts and come up with reasonable payments. Payment schedules for Chapter 13 bankruptcy can be constructed on a 3-5 year basis. This means one can expect to make payments monthly for 3- 5 years. In this sense, though bankruptcy has been declared, paying the debts may last for several years.