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.