In April 2014, Detroit’s emergency manager stated that he hoped the city would emerge from bankruptcy later this year.
In July 2013, the City of Detroit filed for bankruptcy protection under Chapter 9; it was the largest such filing in the country’s history. Although emergency manager Kevin Orr had hoped that the process would wrap up quickly, the case has dragged on amid numerous objections from creditors. Mr. Orr hopes that the case will be over by October 15.
That date is just a few weeks after Mr. Orr’s 18-month term is set to expire.
The bankruptcy process
A personal bankruptcy under Chapter 7 does not take nearly as long as a much larger Chapter 9 or Chapter 11 proceeding. The debts involved are usually not nearly as complicated, there are few if any third parties interested in the process and the amount involved is minuscule compared to a municipal or business bankruptcy. In fact, the vast majority of debtors never have to go to court at all.
In a Chapter 7, there is a meeting with the bankruptcy trustee about four to six weeks after the petition is filed. The trustee’s main job is to examine the paperwork and ensure that there are no red flags. About four to six months later, most or all of your unsecured debts will be discharged.
In a Chapter 13, the trustee examines your petition and ensures your debt repayment plan disposable income is paid to the Trustee to distribute to your creditors for either three or five years. At the end of that time, any remaining unsecured debts are discharged.
Contact us for a free consultation with attorneys who understand the entire bankruptcy process.
Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA
If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.
Get In Touch with Faro & Crowder, PA
Faro & Crowder, PA
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
The information on this blog or any blog is not intended as, and should not be taken as, legal advice.