When your financial situation is dire, you’re looking for solutions, and you need them quickly. You might think that the bankruptcy process is just too long and cumbersome to provide the kind of relief you need right away. While there are a number of steps that you need to go through, that doesn’t necessarily mean that it will take an extremely long time. In this post, we will examine just how long bankruptcy takes in Wisconsin.
Two Kinds of Bankruptcy
The first thing you should know is that there are generally two different kinds of bankruptcy that individuals can pursue, Chapter 7 and Chapter 13. The actual bankruptcy process through bankruptcy court for both takes approximately four to six months. For Chapter 7 bankruptcy, that’s it finished; your unsecured debt is eliminated. For Chapter 13 bankruptcy, you enter into an agreement that runs over three to five years where a portion of your debts are repaid.
Whether you are filing Chapter 7 or Chapter 13 bankruptcy, the bankruptcy court process is the same. It begins with pre-filing credit counseling. This seminar usually lasts between 60 and 90 minutes and is required before you actually file in the bankruptcy court. There is also a post-filing course that you are required to complete successfully. The word “course” here is a bit misleading. In Wisconsin, there are approximately 85 courses approved by the US Trustee, and they range in price and duration. Some of them are as short as 2 hours.
A 341 meeting must take place within 3 to 7 weeks after filing. At a 341 Meeting you meet with the Trustee appointed to oversee the case. The Trustee checks your identification and asks you a series of questions about the bankruptcy paperwork. The Trustee’s job is to check your identity, review your paperwork for accuracy, and make sure that your creditors get paid as much as possible. Creditors who attend can ask about financial matters, although it’s rare for creditors to appear. The whole thing usually lasts about 10 minutes; if there are creditors present or the inquiry seems to be taking longer, another date will be set to conclude the meeting.
Differences in 341 Meeting
The Trustee in Chapter 7 and Chapter 13 has different duties. The Chapter 7 Trustee will sell any assets that you can’t protect with a bankruptcy exemption and distribute the proceeds to creditors. The experts at Burr Law can help you preserve your assets. For instance, you’ll almost certainly retain your car and house. The Chapter 13 Trustee will evaluate the workability of your proposed Chapter 13 repayment plan. If the judge approves the plan at the Confirmation Hearing (which follows), the Chapter 13 Trustee will continue to distribute monthly payments to creditors. (Debtors begin making the proposed plan payments about 30 days after filing and receive the funds back if the court doesn’t confirm the plan, with some exceptions.)
Confirmation Hearing for Chapter 13 Bankruptcy
If you are pursuing Chapter 13 bankruptcy, there will be a Confirmation Hearing within 45 days of the 341 Meeting. In Wisconsin, it is not usually necessary for you to appear at this hearing; only your attorney needs to do so. If there are other issues, the Confirmation Hearing can be continued (delayed) either at the request of a creditor or your request. A Continuance can be granted multiple times.
For Chapter 7 bankruptcy, the Discharge happens between 60 and 90 days after the 341 Meeting. For Chapter 13 bankruptcy, the Discharge does not occur until the repayment plan (usually three to five years) is completed.
Bankruptcy is complex, but doesn’t have to be lengthy. The experts at Burr Law can guide you through the process so that you meet all deadlines and emerge into a financial future that is much less stressful.