How Long Will a Chapter 7 Take in Florida?

If you are in financial trouble and are considering filing bankruptcy, you want relief immediately. One of the most common questions our Fort Lauderdale bankruptcy lawyers here is about how long the process will take. Typically, the Florida Chapter 7 bankruptcy process takes from four to six months. Below, our attorney explains the timelines associated with each step of the process, and the factors that could delay your case.

File the Bankruptcy Paperwork

Your Chapter 7 bankruptcy case will officially begin when you file the appropriate paperwork with the court. You will need to provide information about your income, debts, assets, expenses, financial transactions you have recently made, and any property that falls within one of Florida’s acceptable exemptions.

Immediately after you file, an automatic stay is issued. This prohibits lenders and creditors from contacting you and trying to collect on a debt. The automatic stay will bring the immediate relief you need from debt collection companies and creditors. It will remain in place for the duration of your bankruptcy case.

The 341 Meeting of Creditors Hearing

When the court notifies your creditors that an automatic stay has been issued and they must stop all action against you, they will also be told of the 341 meeting of creditors hearing. You must also attend this meeting. You will be sworn in and the bankruptcy trustee will ask you a number of questions. Your creditors are also allowed to ask questions, but they rarely do. The 341 meeting of creditors must take place between 20 and 40 days after you filed bankruptcy. The questioning component of the meeting usually does not take longer than ten minutes.

A Second Hearing Date

In some cases, another hearing date has to be set after the initial 341 meeting of creditors. This may happen if you forgot to bring certain documents, such as your social security card, or you forgot to bring other information, such as your bank account statements. It is important to work with a Fort Lauderdale bankruptcy lawyer who will ensure you bring all the important documentation to the first hearing. That can help prevent further delays in your case.

Creditor Objections

Once the bankruptcy trustee has officially closed the 341 meeting of the creditors, your creditors can raise certain objections. They may object to a single debt that may be discharged, or they can even object to your entire case. Creditors must raise these objections within 30 days of the 341 meeting of creditors meeting.

The Financial Management Course

The bankruptcy courts want to make sure that you will not have your debts discharged in bankruptcy only to have you file for bankruptcy again in the near future. To help prevent this, you are required to take a financial management course. You can take this course any time after the 341 meeting of creditors has been scheduled, but it must be completed within 60 days of the first date set for the 341 meeting of creditors.

The Discharge

If everything proceeds accordingly, you should receive your bankruptcy discharge approximately 60 days after your 341 meeting of creditors final hearing. The judge will issue a court order that eliminates your debts. However, your case is still not considered officially closed at this point. That does not happen until the court resolves any outstanding issues. Once a judge has resolved these matters, they will issue a final decree and your case will be dismissed.

Issues that Delay a Bankruptcy Case

Although most bankruptcy cases take between four and six months to close, there are some common issues that could cause a delay in your case. These are as follows:

• More information required: If it is found at the 341 meeting of creditors that the trustee needs more information, they will reschedule another meeting. This means the 341 meeting is not yet concluded. If you submit the required paperwork before the rescheduled date, and the bankruptcy trustee is satisfied that they have everything they need, they may cancel the rescheduled meeting and conclude it. If they do not, you will have to attend another hearing and answer more questions about the documents and your financial situation.
• The sale of property: If your bankruptcy case requires certain property to be sold, you can expect your case to take longer. Real estate usually takes the longest to sell. Your case is only closed once the trustee has sold the property, distributed the proceeds to your creditors, and has filed a final report with the court.
• You are involved in a lawsuit: There are times when a creditor may object to discharging a certain debt. To do this, they will file a complaint with the court and you will be involved in a bankruptcy lawsuit. Bankruptcy lawsuits can add six months or more to a case and your case is not solved until the lawsuit is officially resolved.
• You do not take the course right away: There is a lot in the bankruptcy process that you cannot control. However, you can control when you attend the financial management course in most situations. The longer you take to complete this course, the longer your bankruptcy case will take. If you take too long to complete the financial management course, the court may throw out your case altogether and you will be required to start all over again.
• You are trying to discharge a student loan: Discharging student loan debt is done using a different process than discharging other types of debt. You will either need to negotiate a settlement with the lender or present evidence to prove your case during a trial. Discharging student loan debt can take one year or more.

Our Bankruptcy Lawyer in Fort Lauderdale Can Help Your Case Proceed Smoothly

When filing for bankruptcy, you likely want the process over with as soon as possible. At Loan Lawyers, our Florida bankruptcy attorneys will ensure you are as prepared as possible so your case proceeds as quickly as possible. Call us today at (954) 523-4357 or contact our Fort Lauderdale bankruptcy attorney online to schedule a free consultation and to learn more about how we can help.