How long does a Chapter 13 bankruptcy usually take to complete?

Chapter 13 bankruptcy takes 36 to 60 months to complete. Personal bankruptcy--specifically chapter 13 bankruptcy--is a legal process which allows you to pay creditors the money you owe them. The U.S. Bankruptcy Courts provide you with a bankruptcy payment plan tailored to your financial situation. Thus, that is why the length of your chapter 13 bankruptcy case varies.

The repayment plan requires you to make monthly payments to a bankruptcy trustee. The trustee collects the funds then pays your secured and unsecured creditors. Even though your repayment plan has the exact number of months you must pay, that doesn’t mean that you can’t make double payments or pay a little extra. This means that extra money can shave the number of months you have to pay the bankruptcy trustee under your plan.

However, your repayment plan can be longer if you have financial difficulties. For instance, if you lose your job, the U.S. Bankruptcy Courts may allow you to suspend your monthly payments for a specific time. The modification of your repayment plan should allow you to keep your mortgage payments current. The modification doesn’t mean that you’re not required to make those payments. You will. You’ll just make the payments later.

For the exact number of months you’ll have to make your chapter 13 payments, consult a bankruptcy lawyer. The lawyer will evaluate your financial situation and tell you the timeframe of your repayment plan. Also, your bankruptcy lawyer will file your bankruptcy petition.