Most of our Escondido readers know that filing for bankruptcy can be a just the start of a complicated and oftentimes lengthy process. But, what our readers may not know is that the Chapter 7 bankruptcy process can be a bit faster than other types of bankruptcy.
As a recent article noted, a Chapter 7 bankruptcy filing can actually be completed in as little as four months in many cases. Of course, that fast of a turnaround -- from filing to discharge of debts -- largely depends on the individual filing for bankruptcy. If all of the paperwork associated with a bankruptcy filing is filled out correctly the first time around and no other problems surface, the process can be quicker than most people would probably expect.
Perhaps the biggest thing that many people forget is that filing for bankruptcy is really just the beginning of what should be some major life changes. After a bankruptcy filing is complete and debts are discharged, the filer will most likely need to approach their finances in a completely different way than they did before the bankruptcy filing. The need for a change is obvious -- no one ever really wants to file for bankruptcy once, but they certainly don't want to do so twice.
One bankruptcy filing will have a serious impact on a person's credit for years. For a Chapter 7 bankruptcy, the "black mark" on the person's credit score will stay there for 10 years from the date of the bankruptcy filing. However, when an individual or family is weighing the pros and cons of bankruptcy, sometimes it is worth it to get out from under a crushing amount of debt.
Source: Fox Business, "When is a Bankruptcy Officially Discharged?" Erica Sandberg, Aug. 4, 2014