Time

Time is a constant concern when talking about bankruptcy. How long is the process? How long is the consultation? How long is my "hearing"? It seems from the beginning of our relationship people want to know how much time will be invested.

I thought I would dedicate this entry to giving some ballpark estimates of time frames for people.

How long is the free consultation?
The free consultation with one of our Attorneys at Chang & Diamond, APC is about 30 minutes. Please see our "10 Questions" article to get the most out of your free consultation.

How long is the process?
For a Chapter 7 I estimate that the entire time frame (assuming that all goes exactly according to plan) is about 6 months from the day you meet with one of our Attorneys to the day you get a discharge. For a Chapter 13 you will be in bankruptcy for about 3 to 5 years.

How long is my "hearing"?
Your 341a Meeting of Creditors is very very short. However, the waiting can be very very long. I always suggest that people get to the location of the "hearing" about 30 minutes before to find the correct room and get settled in. Depending on if the Trustee is on schedule or not (more often than not it seems that they are behind) you may find yourself with some waiting time on your hands. However boring this may be it does provide you an opportunity to understand the line of questioning. Take this chance to learn what questions will be asked of you on the record. When it is your turn to sit before the Trustee answer any questions he/she asks of you then you are done. The questioning should last only about 5 minutes.

How long until I can get a credit card again?
Anytime you are IN bankruptcy you cannot incur new debt. So during the bankruptcy process you cannot get any new credit. Once your bankruptcy has been completed you are free to start to rebuild your credit again. Only a lender can let you know if you qualify for their credit card, and a secured card may be a good place to start. Making sure you pay the entire balance every month is a wonderful way to re-build credit.

How long does a bankruptcy stay on my credit report?
All bankruptcies stay on your credit report for 10 years. The bankruptcy tends to matter less and less as time goes by, but it is on your report for 10 years. Our FAQ section addresses this further on our site.

How long until I can purchase a house?
This is completely up to the lender. However, if you surrender a home in your bankruptcy or have a foreclosure on your credit report then Fannie Mae just released new guidelines that state you cannot qualify for a home loan for 7 years after a foreclosure has been reported on your credit. A short sale prohibits you from purchasing for 2 years after it has been reported on your credit.

When will I be able to get a new vehicle after bankruptcy?
Yes. Several lenders have programs to assist you in purchasing a vehicle after bankruptcy. After you file chapter 7 bankruptcy you cannot file again for 8 years. If you have a 5 year loan on a vehicle the lender can be certain that you are responsible for making those payments.

I filed bankruptcy in the past, how long until I can file again?
You can only receive one discharge every 8 years. Note that if you file more than 3 bankruptcies in one year you may have to prove that you are not filing in bad faith.

Call us today to schedule some time with us. We look forward to working with you!