Wondering about filing Bankruptcy:

The first step is the Consultation . . .

But when can you file?

If you’re considering bankruptcy and have had an initial consultation with us at Walden & Pfannenstiel, LLC, you might be wondering how quickly you can file. Here’s what you need to know about the timeline.

Steps Before Filing

Bankruptcy Filings -- The total number of filings ... Is up … A total of 16% over last year. From the United States Courts: Bankruptcy filings rose 16 percent during the 12-month period ending March 31, 2024. That is a similar rate of acceleration as in the Dec. 31, 2023, quarterly report, but new bankruptcy cases remain significantly lower than before the start of the coronavirus (COVID-19) pandemic. According to statistics released by the Administrative Office of the U.S. Courts, total filings rose to 467,774 new cases, compared with 403,273 cases reported during the year ending March 31, 2023. Business filings increased 40.4 percent, from 14,467 in March 2023 to 20,316 in the newest report. Non-business filings rose 15.1 percent, from 388,806 in March 2023 to 447,458 in March 2024. This year’s 12-month filing total for the quarter ending March 31 is nearly three-fifths of the total reported in March 2020, when the pandemic disrupted the U.S. economy. That year’s 12-month total was 764,282.

  1. Credit Counseling: Before you can file for bankruptcy, you must complete a credit counseling course from an approved provider. This course is required and helps you explore whether bankruptcy is the right option for you. The course typically takes about 60 to 90 minutes and can be completed online or over the phone.
  2. Gathering Documents: We will need various financial documents, such as pay stubs, tax returns, bank statements, and a list of your debts and assets. Gathering these documents can take a few days or longer, depending on how organized your records are.
  3. Preparing the Petition: Once the necessary information is collected, we will prepare a DRAFT of your bankruptcy petition. This document details your financial situation and is filed with the court to officially begin your bankruptcy case. Preparing the petition can take a few days to a week, depending on the complexity of your situation.

Filing Timeline

After your consultation and once the above steps are completed, you can file for bankruptcy fairly quickly. In many cases, it’s possible to file within a week or two after your initial consultation, assuming you promptly complete the credit counseling and provide the required documents.

Moving Forward

Once your bankruptcy is filed, the automatic stay goes into effect, which immediately stops most collection actions against you. This gives you some breathing room as you work through the bankruptcy process.

The timeline for filing bankruptcy can be relatively quick, but it depends on your preparation and the complexity of your case. Working closely with us and staying organized will help ensure a smooth and timely filing, allowing you to move forward with your fresh financial start as soon as possible.

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