What kind of debt does Chapter 7 bankruptcy deal with?
Chapter 7 bankruptcy generally deals with unsecured debts. This can include personal loans, credit cards, and medical bills. However, you must still pay child support and other government debt, like taxes. This also usually includes student loans.
When it comes to whether or not your home or car can be seized when filing for Chapter 7 bankruptcy, if the equity in your car or house exceeds the exemption level for your respective state, there is a possibility it will be sold. If it does not, you generally keep them.
How long does Chapter 7 bankruptcy stay on your credit report?
Chapter 7 bankruptcy can stay on your credit report for up to 10 years.
Chapter 13
If you do have sufficient income to cover at least a portion of your debt, then you need to file for Chapter 13 bankruptcy. While this will not get rid of your debt entirely, it will either reorganize your payments in order to make them more manageable in the long run, or eliminate a portion of your debt so that you are better able to manage the payments for your debt.
One way to better restructure your debt payments is to spread your them out over an extended period of time, or by opting to pay for only a partial amount of the loan. Regardless of which option you go with, it will ultimately make either your weekly or monthly payment less expensive. This means your finances will be monitored by a trustee, and this specific type of payment plan can last for up to five years.
What are the requirements for filing Chapter 13 bankruptcy?
Important requirements for filing Chapter 13 bankruptcy include:
You cannot have filed for Chapter 13 bankruptcy in the past two years, or have filed for Chapter 7 bankruptcy in the past four years.
You have to be up-to-date with your tax filings.
You must have a sufficient amount of income to cover a portion of your debt.
The total amount of secured debt cannot exceed $1,184,200, and the total amount of unsecured debt cannot exceed $394,725.
What kind of debt does Chapter 13 bankruptcy deal with?
The court will approve a payment plan for both your secured debts, such as car loans and mortgage, and your unsecured debt. You will keep your assets while paying on the plan for about three to five years. As long as you stay up-to-date with your payment plan and mortgage payments, your home and car will not be seized.
Will my payment plan for Chapter 13 be accepted?
This is contingent upon two main factors: whether each respective creditor will collect at least as much as if you had opted to go with a Chapter 7 bankruptcy, and whether or not the creditors are being treated fairly in the eyes of the judge and trustee.
When deciding whether or not to accept your payment plan, one of the most important factors to creditors is how quickly they get their money. It is not uncommon for creditors to try to negotiate your payment plan in order to collect money at a faster rate. While creditors don’t need to necessarily agree with your payment plan, having their seal of approval will help the payment plan be accepted by both the judge and trustee.
How long does Chapter 13 bankruptcy stay on your credit report?
Chapter 13 bankruptcy can stay on your credit report for a maximum amount of 10 years, usually closer to seven years.
Why do I need a bankruptcy attorney?
The short answer: bankruptcy can get tricky.
The long answer: bankruptcy can get tricky if you don’t know what you’re doing. If you haven’t filed for bankruptcy before, or even if you have, there are many steps involved in the filing process that you run the risk of accidentally skipping. This can make you vulnerable to not having all of your debts accounted for, or even having your case dismissed. For these very reasons, finding a qualified bankruptcy lawyer before filing is more important than ever.
USAttorneys.com has only the best bankruptcy attorneys in the nation who have the scope of knowledge necessary in order to ensure your bankruptcy case is handled seamlessly from beginning to end.
