How Long Does Bankruptcy Take?

Chapter 13 bankruptcy entails a repayment plan that gradually pays off debts over a three- to five-year period. The procedure starts with the submission of a repayment plan, and it typically takes three to six months for the court to approve the plan. The debtor then adheres to the plan for the specified amount of time until the debts are dismissed.

Chapter 11 Bankruptcy: Businesses often use Chapter 11 bankruptcy to reorganize and carry on with operations. The Chapter 11 bankruptcy process can last anything from a few months to several years. The timeframe is determined by the size and complexity of the firm, as well as the level of cooperation, and it frequently requires a difficult negotiating and restructuring process.

Chapter 7 Bankruptcy: This type of bankruptcy typically involves the liquidation of assets to pay off debts. The entire process usually takes about three to six months from the time of filing to the discharge of debts.