When will I get a discharge after filing for bankruptcy?

On Behalf of | Jan 6, 2019 | personal bankruptcy |

Financial challenges can impact anyone and Indiana residents who are experiencing these problems will frequently be unsure of what they can do to get into a better financial situation. While it might seem as if there is no way out, filing for bankruptcy is a viable and beneficial strategy to discharge a significant portion of debt or to even clear it completely. As with any legal issue, having a lawyer’s advice is critical.

Those who are reluctant to move forward with a bankruptcy and are hesitant due to the stigma that is unfairly attached to it should understand how a Chapter 7 bankruptcy or a Chapter 13 bankruptcy can help. One aspect of the process is knowing when the discharge will be granted. There are different time-frames for when the discharge is complete. Those who are moving forward with a Chapter 7 liquidation will get the discharge sooner than those who are repaying their debt with a Chapter 13.

With Chapter 7, the court grants the debtor a discharge when the amount of time for which a creditor can lodge a complaint that objects to it is completed. There is also a 60-day window for which creditors can request a dismissal because there was substantial abuse. The discharge will be completed, in general, about four months after the date in which the debtor filed the petition. For Chapter 13, the discharge is usually given after the debtor has finished making the payments based on the plan. Since Chapter 13 plans are usually for three or five years, that is how long it will take. Debtors are required to take part in a financial management course and the discharge can be denied if there is a failure to do so. This is true with Chapter 7 and Chapter 13.

A common worry for people thinking about filing for bankruptcy is that they do not know how long it will take to get a discharge. This concern can be assuaged by contacting a law firm that has extensive experience in helping people who have reached the point where they want to be free of debt and realize that bankruptcy is a way to do that. Calling a debt relief lawyer can provide information about any part of a bankruptcy decision.