Depending on the type of bankruptcy you file, you can expect your bankruptcy discharge to happen at a certain time after you file for bankruptcy. For anyone filing bankruptcy, a bankruptcy discharge is a great event that happens during the bankruptcy process. A bankruptcy discharge releases the person filing for bankruptcy from any debt obligations that were included in the bankruptcy proceedings. After a bankruptcy discharge, collectors can no longer contact an individual to try and collect payments. Collectors will be breaking the law if in any fashion they try to collect money from a debtor.
When will the Bankruptcy Discharge Occur?
The next thing you may be wondering is, "When will the discharge occur?" To answer that question, you must know what type of bankruptcy you are filing. Different types of bankruptcies take longer than others, so you have to consider which type of bankruptcy you are filing. Since the majority of personal bankruptcies are either Chapter 7 or Chapter 13, those will be discussed here.
In a Chapter 7 bankruptcy
, the discharge happens relatively quickly. The reason is that Chapter 7 bankruptcies are liquidation bankruptcies in which individuals don't end up with drawn out repayment plans. The discharge will happen upon the expiration of time allotted for creditors to file a motion to dismiss the case for substantial abuse. During that time creditors can also object to discharges. In most cases, the creditors will do neither during the allotted time (typically 60 days after the 341 meeting), and the individual will receive their discharge. The discharge happens on an average of 4 months after the individual files their petition with the bankruptcy court.
In a Chapter 13 bankruptcy
, the discharge happens after the individual completes his/her agreed upon repayment plan. Repayment plans usually last from three to five years, so generally speaking, the discharge will be granted about four years after filing. Don't worry though, because if you enter into an agreed upon repayment plan with creditors, they will no long be able to hassle you. If you speak to anyone that has gone through bankruptcy, they'll tell you that the bankruptcy discharge was one of the best parts of the process. It'll feel great to no longer have to worry about collectors trying to reach you all hours of the day. You'll also feel good knowing that your debts have been taken care of. If you would like to find out more, don't hesitate to contact a bankruptcy attorney.
Contacting an attorney could be your first step to a new financial future.