How Long Does the Bankruptcy Process Take in Missouri?

When facing financial difficulties, many individuals in Missouri consider filing for bankruptcy as a way to regain control of their finances. One common question that arises is: how long does the bankruptcy process take in Missouri? The timeline can vary based on several factors, including the type of bankruptcy filed and the complexity of the case.

In Missouri, there are two primary types of consumer bankruptcy: Chapter 7 and Chapter 13. Each has its own process and timetable.

Chapter 7 Bankruptcy: This is the most common type of bankruptcy for individuals seeking to eliminate unsecured debts. The process typically takes about 3 to 6 months from the time of filing to discharge. Initially, there is a gathering of necessary documentation, which can take a few weeks. Once the bankruptcy petition is filed, an automatic stay is enacted, preventing creditors from pursuing collections.

After the petition is filed, the court assigns a trustee to oversee the case. A meeting of creditors, called a 341 meeting, usually occurs within 20 to 40 days post-filing. Most cases proceed smoothly and debts are discharged approximately 60 to 90 days after this meeting, provided there are no complications.

Chapter 13 Bankruptcy: For those who have a regular income and wish to repay their debts over a period, Chapter 13 bankruptcy is a suitable option. The process often takes 3 to 5 years, as it involves proposing a repayment plan to the court. After filing, debtors must attend a 341 meeting, similar to Chapter 7, but then they also need to submit an approved repayment plan that detail how they intend to pay creditors.

The court then schedules a confirmation hearing, usually within 20 to 45 days after filing, where the repayment plan is reviewed and approved. Once confirmed, the debtor will follow the payment plan for the duration of the term, making monthly payments to the bankruptcy trustee who distributes the funds to creditors. The debtor remains under supervision throughout this period, and discharge of remaining debts occurs once all payments are completed.

Factors Affecting Bankruptcy Duration: Several elements can affect how long the bankruptcy process takes. Complexity of the financial situation, disputes with creditors, additional documentation requests, or the presence of secured debts can all add time to the process. If a debtor has multiple assets or incomes, this may also lead to a longer timeline as the trustee evaluates these for liquidation in Chapter 7 or inclusion in the repayment plan in Chapter 13.

Conclusion: In summary, the duration of the bankruptcy process in Missouri varies significantly between Chapter 7 and Chapter 13 filings. Generally, Chapter 7 can be resolved in a matter of months, while Chapter 13 spans several years. Understanding these timelines can help individuals navigate their financial challenges and make informed decisions about their next steps.