Tuesday, June 2, 2015


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. 

1 comment:

  1. Hey, nice info!, very informative post.............
    No 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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