How Long Does Each Type of Bankruptcy Take?

Whether you are considering an individual or a business bankruptcy filing, you are likely wondering how long you should expect the bankruptcy case to take. There is no specific time limit, or set number of days, in bankruptcy cases in general. And even within the timelines for each type of bankruptcy, debtors typically do not take precisely the same amount of time given that filings can happen at different periods of time, as can other elements and aspects of the bankruptcy case.

Accordingly, the best way to gain a better understanding of the length of time you should anticipate in your bankruptcy case is to discuss your circumstances with a bankruptcy attorney in West Palm Beach. In the meantime, we can provide you with more information about general timelines for different types of bankruptcy cases.

Liquidation Versus Reorganization Bankruptcy 

While there will be differences in the length of liquidation bankruptcies, and in the length of different kinds of reorganization bankruptcies for individuals and businesses, in general: liquidation bankruptcies take significantly less time than reorganization bankruptcies.

Why are liquidation bankruptcies much shorter in time length than reorganization bankruptcies? The answer has to do with the nature of the bankruptcy type. With a liquidation bankruptcy, all nonexempt assets are liquidated and the debtor receives a discharge in an individual liquidation bankruptcy, and all business assets are liquidated and the business closes in a business liquidation bankruptcy. While there are specific timelines and timing requirements for all of the forms and filings required, Chapter 7 bankruptcies for both individuals and businesses tend to take four to six months on average. While specific Chapter 7 bankruptcy cases may take more or less time, liquidation bankruptcies typically take a matter of months.

Differently, reorganization bankruptcies tend to take a matter of years. The particular timelines vary among the different kinds of business and individual reorganization bankruptcies. Generally speaking, Chapter 13 bankruptcy cases typically last for three to five years. These reorganization bankruptcy cases are for individuals filing for bankruptcy. The length of time for a traditional Chapter 11 bankruptcy, which is a common type of reorganization bankruptcy among businesses but can also be filed by individuals, may last anywhere from just over a year to five years. The length of the reorganization bankruptcy will depend on a range of factors, including those specific to the debtor’s financial circumstances.

Contact a West Palm Beach Bankruptcy Attorney Today 

There is no single timeline for a bankruptcy case, and the timelines that debtors can usually anticipate will depend on a range of factors, including the type of bankruptcy case and the specific financial circumstances in the case. If you have questions about the likely timeline of your bankruptcy case, or if you need assistance filing for business or individual bankruptcy, one of the experienced West Palm Beach bankruptcy lawyers at Kelley, Fulton, Kaplan & Eller can assist you. We regularly represent individuals and businesses alike in both liquidation and reorganization bankruptcy cases. Contact us today to ask any questions you have or to begin working on your bankruptcy filing.

Sources:

uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics

uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics