Deciding if you should file for bankruptcy is a tough decision. Most people who find themselves in debt qualify for at least one type of consumer bankruptcy. If you have over $10,000 of debt and are unable to pay your bills or are dealing with a foreclosure, wage garnishment or lawsuit you may want to consider filing for bankruptcy.
Chapter 7 Bankruptcy
When you file Chapter 7 bankruptcy you eliminate your unsecured debt such as credit cards and medical bills. Most of the time you can keep your home and car. In order to qualify for Chapter 7 bankruptcy you cannot have substantial assets or earn over the median income in your county.
Chapter 7 bankruptcy will stop a wage garnishment and lawsuits against you.
Some debt is not eliminated in Chapter 7 such as student loans, secured mortgage debt, child support and alimony, parking tickets and tax debt.
Many people qualify for Chapter 7 bankruptcy and can eliminate most of their debt. Chapter 7 attorney fees range from $1,000-2,000 depending on your case. The court filing fee is $335.00.
Chapter 13 Bankruptcy
When you file Chapter 13 bankruptcy you file a bankruptcy plan that pays back some of your debt over a 3 to 5 year period. Many times, people who might not qualify for Chapter 7 due to income or assets, can file a Chapter 13 case and have a manageable payment for the life of the plan.
Chapter 13 bankruptcy can include parking tickets and lift a license suspension, can void a second mortgage lien, and can include tax debts owed to the IRS or state.
To qualify for Chapter 13 bankruptcy you must have some form of regular income, such as a regular job, child support, or a pension or social security.
Chapter 13 fees are set by the court in this jurisdiction and are $4,000.00 plus the court filing fee of $310.00. However many times you can have your case filed with little or no money down, depending on your situation.
Call us today for a free consultation and we will help you determine which type of bankruptcy is right for you.
Hey, nice info!, very informative post.............
ReplyDeleteNo one needs an attorney to tell them that bankruptcy is a complicated process. However, a bankruptcy attorney can provide the assistance necessary to get through this stressful process.
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