Bankruptcy: How Long Does It Take? [Infographic]

If you’re considering filling bankruptcy in Florida, you may be wondering how long after you start the bankruptcy process it will take to reach certain milestones. To answer the most common bankruptcy concerns we hear from clients, our bankruptcy lawyers created this informative yet straightforward infographic. In this unique infographic, you’ll find answers to the following bankruptcy timeline questions:

• How long does bankruptcy take?
• How long does it take to file bankruptcy?
• How long does bankruptcy stay on your credit report?
• How long after bankruptcy can I buy a house?
• How long after bankruptcy can I buy a car?

You can find more details about each question and additional bankruptcy resources below.

Florida Bankruptcy Timeline Infographic

How long does bankruptcy take?

If you file Chapter 7 bankruptcy, it will take approximately 3 to 6 months to complete the process for a standard case. Your Chapter 7 bankruptcy may take longer depending on how long it takes to gather all paperwork the court needs to assess your case, or if there are any complications or issues with the asset liquidation process.

If you file Chapter 13 bankruptcy, it will take approximately 3 to 5 years to complete the bankruptcy process. Since this type of bankruptcy requires you to complete a court-established repayment plan to pay off certain debts, a Chapter 13 bankruptcy is not considered complete until every payment in your plan has been fulfilled.

How long does it take to file bankruptcy?

On average, it takes a few weeks to a few months to file bankruptcy with the help of a bankruptcy lawyer. Filing bankruptcy is a complex process, so attempting to file without an attorney will likely increase the amount of time it takes you to file.

Keep in mind that completing the filing process does not mean your bankruptcy work is done. Depending on which of the different types of bankruptcy you file and other specific details of your unique financial situation, there may be additional steps you have to complete before your bankruptcy is finalized.

How long does bankruptcy stay on your credit report?

After the date of completion, a Chapter 7 bankruptcy will stay on your credit report for 10 years, whereas a Chapter 13 bankruptcy will stay on your credit report for 7 years. If you’re filing Chapter 7 and think the extended time on your credit report is unfair, consider that those filing Chapter 13 bankruptcy have to spend an average of 3 to 5 years repaying their debts before their bankruptcy is considered complete.

How long after bankruptcy can I buy a house?

Buying a house after filing bankruptcy may be a serious concern of yours if you are filing Chapter 7 bankruptcy and do not qualify for Florida’s homestead exemption, if you are renting an apartment or other property and do not currently own a home, or even if it’s simply time to relocate. Whatever your reason, there is a certain amount of time that must past after your bankruptcy is discharged before lenders will consider you for a home loan.

Here is how soon you can be considered for the most common types of home loans after your Chapter 7 discharge:

• FHA Loan - 2 Years
• VA Loan - 2 Years
• Conventional Loan - 24 to 48 Months

After your Chapter 13 discharge, you can be considered for the following types of loans as soon as:

• FHA Loan - 12 Months
• Conventional Loan - 24 Months

If you are looking to buy a home with cash, and not a loan, the amount of time you wait is entirely up to you.

How long after bankruptcy can I buy a car?

There is no requirement for how long you have to wait to buy a car after filing bankruptcy. However, you should wait until you’ve received your bankruptcy discharge or your bankruptcy case was dismissed. If you’re looking to get a car loan after filing bankruptcy, you should use this rule of thumb: the longer you wait to get a car loan, the better your interest rate will be.

Bankruptcy Resources

Whether you’re considering filing bankruptcy and want to learn more, or in the process and confused about the situation, our essential bankruptcy resources will help to guide you through the process.

• Bankruptcy FAQs
• What Really Happens When You File For Bankruptcy
• Chapter 7 vs Chapter 13
• Chapter 7 Bankruptcy
• Chapter 13 Bankruptcy
• Filing Bankruptcy While Married

Bankruptcy Attorney Daytona Beach

Anyone considering filing bankruptcy should obtain the services of an experienced Florida bankruptcy attorney to protect their assets and financial interests as much as possible. This is especially true if you are married and filing for bankruptcy because the process becomes significantly more complex. To protect yourself, your loved ones, and your future, schedule a free consultation with an experienced bankruptcy attorney today. We will discuss the circumstances of your unique situation, answer any questions you have, and represent you throughout your entire bankruptcy proceeding.