Chapter 13 – How Long Does Chapter 13 Bankruptcy Last?

Bankruptcy is an unfortunate legal reality that occurs when financial situations become so problematic a cascading failure occurs. The party can no longer meet its financial obligations, no matter how creative the financing gets. In these instances, the courts provide an avenue for a way out of the mess.

However, not all bankruptcies are treated the same. Some involve complete liquidation of what’s left, known as Chapter 7 Bankruptcy. Others involve a court-ordered restructuring that still pays debt back but under court terms versus what the lenders want to have -this is known as Chapter 13 Bankruptcy. To know how long Chapter 13 can last, a Baltimore, Maryland bankruptcy attorney, Kim Parker, can help.

Chapter 13 Bankruptcy Procedures

Once a filing is made with the federal bankruptcy court, the court’s trustee goes through the financial architecture of the filer. The goal of the exercise is to develop a plan that is possible for the filer to actually achieve financially, still paying debt down but with significant modifications to the debt terms. That could involve lower monthly payments, expanding schedules, and adjusting other features as the court deems necessary to make the restructuring plan work.

The filer is not off the hook from the debt; instead, the filer has to meet the restructuring terms as well as report back to the court periodically on progress. Only when the goal of the plan is met, then the filer allowed by the court to exit the restructuring plan and complete the Chapter 13 filing process.

How Long Does Bankruptcy Chapter 13 Take?

An average Chapter 13 bankruptcy case typically develops and implements a restructuring plan over anywhere from three to five years. Long periods are rare and usually require unique circumstances for the court to make an exception. Of course, some inherent factors impact time.

The amount of income available and likely to be available makes a difference, and the amount of the debt owed is another big issue to calculate for. So, wondering how long to discharge Chapter 13 varies from one case to the other; there is no generic rule that is exactly the same for everyone.

Getting Professional Help Versus Filing Alone

The biggest mistake a party can make in bankruptcy is to try and manage the filing process without a qualified bankruptcy attorney involved. This is frequently an option people consider because they don’t feel they have the means to pay for professional help. This is a mistake.

A bankruptcy attorney provides critical assistance, guidance, and representation both in preparing bankruptcy filings as well as helping respond correctly to the court. The answers a filer provides, both in filing and in person, matter tremendously. If done wrong, the filing could be denied, or, worse, the filer could be charged with perjury for lying to the court about their financial status, and no one wants that.

Even just with a filing denial, the impact is tremendous. Not only does the filer have to start over from scratch, but creditors also have more time to rack up more damage, including collection efforts and irritation at all levels.

All of that behavior can be completely shut down if a filing was just done correctly from the start with the expertise available via a bankruptcy attorney. So is going it alone really worth all the trouble it comes with? Probably not by any reasonable standard.

If You Must File Chapter 13, Do It Right

If your business or personal situation has the ability to address your debt, but you need help to stop the cascading failure that happens with overwhelming bad situations, the Law Office of Kim Parker P.A. can provide the needed help to slow things down and get you back on track.

A qualified Chapter 13 bankruptcy attorney in Baltimore, MD, can obtain the court’s help, stop lenders from harassing you, and allow you to work with a Chapter 13 payment plan that allows you to recover adequately as well. Both in answering the court trustee’s questions as well as fending off complaints filed by lenders, Kim Parker is the bankruptcy protection you want in these situations.