If you are struggling with debt and considering bankruptcy, one of the most common and important questions is: “How long does the bankruptcy process actually take?” Whether you are dealing with credit card debt, medical bills, personal loans, or the loss of a job, the length of a bankruptcy case can have a significant impact on your financial plans and peace of mind.
At Rubin & Associates in Dallas, we work with higher-income individuals who are often juggling complex financial situations — multiple properties, business interests, or significant assets. Understanding the timeline of a bankruptcy case is essential to making an informed decision, and that timeline varies depending on whether you pursue Chapter 7 or Chapter 13 bankruptcy.
How long does a Chapter 7 bankruptcy take?
Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy,” and it is typically the faster of the two main consumer bankruptcy options. For many clients, it offers a clean slate by discharging most unsecured debts such as credit cards, medical bills, and personal loans.
Typical duration:
A standard Chapter 7 case usually takes about three to four months from the time of filing to the final discharge of debts.
Key milestones in a Chapter 7 case:
- Pre-filing freparation (1–2 weeks):
This includes gathering financial documents, completing credit counseling (required by law), and preparing the bankruptcy petition. - Filing the case:
Once your petition is filed with the court, an automatic stay goes into effect, halting creditor collection efforts. - 341 meeting of creditors (about 30 days after filing):
You will attend a short hearing with a bankruptcy trustee. Creditors can appear, but most do not. - Discharge (typically 60–90 days after the 341 meeting):
If there are no objections or complications, the court will issue a discharge order, eliminating eligible debts.
Things that may delay a Chapter 7 case:
- Incomplete or inaccurate paperwork
- Creditor objections or fraud investigations
- The sale or liquidation of non-exempt assets
For most of our clients, the process is smooth and efficient, even if there are complex assets involved.
How long does a Chapter 13 bankruptcy take?
Chapter 13 bankruptcy, also known as a “reorganization bankruptcy,” involves creating a repayment plan. It is often the right choice for clients who have a steady income and want to keep their home, car, or other valuable assets while catching up on missed payments.
Typical duration:
The repayment period lasts from three to five years depending on your income level and specific financial situation.
Key milestones in a Chapter 13 case:
- Pre-filing preparation (1–3 weeks):
As with Chapter 7, this includes document gathering, credit counseling, and preparing the petition and repayment plan. - Filing the case:
As soon as the case is filed, an automatic stay takes effect. - 341 meeting of creditors (about 30 days after filing):
Similar to Chapter 7, this is a mandatory meeting with the trustee and potentially creditors. - Plan confirmation hearing (about 60 days after filing):
The bankruptcy judge will review and confirm your proposed repayment plan.
Monthly plan payments:
You begin making payments immediately after filing. These continue for the duration of the plan.
Final discharge:
After all plan payments are completed, remaining eligible debts are discharged.
Things that can extend or complicate a Chapter 13 case:
- Missed plan payments
- Requests to modify the plan
- Objections from creditors
- Failing to file required tax returns or maintain insurance
Because of the extended time commitment, Chapter 13 requires a long-term strategy and close monitoring. At Rubin & Associates, we help ensure our clients stay on track throughout the process.
Why timeframes matter more for higher-income clients
Higher-income individuals often have more assets to protect and more complexity to manage. Your income level does not disqualify you from filing, but it may affect the type of bankruptcy available to you. For example, the “means test” will determine whether you qualify for Chapter 7 or if you are required to file under Chapter 13.
Additionally, the presence of business assets, rental properties, multiple mortgages, or priority debts like tax obligations can lengthen or complicate the timeline. Having an experienced bankruptcy attorney who regularly works with high-net-worth individuals is essential if you fall into this more complicated category.
Schedule your free consultation today!
Choosing between Chapter 7 and Chapter 13 (and understanding how long your case will likely take) starts with a thorough evaluation of your financial picture. Every client’s situation is unique, and what works for one person may not be right for another.
At Rubin & Associates, we offer free, confidential consultations to help you determine the best path forward for your unique situation. We will walk you through all available options, explain the pros and cons of each type of bankruptcy, and give you a clear estimate of how long your case might take based on your specific financial situation.
If you are overwhelmed by out-of-control debt and want to understand how bankruptcy could provide a fresh start, our team is here to help. Whether your case takes a few months or a few years, the first step is a conversation with an experienced bankruptcy attorney who understands your needs and goals.
Call Rubin & Associates today at (214) 760-7777 to schedule your free consultation and begin building a plan for lasting financial freedom.