When is Chapter 13 bankruptcy your last resort?

 

Even though you can file for chapter 7 bankruptcy, there are certain circumstances while filing for chapter 13 bankruptcy may be more beneficial than filing for Chapter 7 bankruptcy.

Gain on a car loan and mortgage in Chapter 13

In Chapter 13 bankruptcy, you are allowed to make up for the missed payments over a period of time and keep the car or home, something is not possible in Chapter 7 bankruptcy. Making up for the missed mortgage payments is only possible in Chapter 13 bankruptcy.

Repay domestic support debts and nondischargeable tax in Chapter 13 bankruptcy

You will be able to use Chapter 13 privileges to pay those debts in full over 3-5 years.

Repay other debts over time in Chapter 13 bankruptcy

When you are having creditors coming at you for your property and salaries, it gets difficult to keep a shed over your head when paying off your debts. With the security of bankruptcy court, you will have a better opportunity of accomplishing both. The automatic stay prevents creditor actions when you pay off the debt over 3-5 years’ repayment plan.

Protect your codebtor on personal debt

If you have filed for Chapter 7 bankruptcy, but the codebtor will yet be on the hook, and your creditor is not going to stop going after them for the repayment. By contrast, if you’ve filed for Chapter 13, the lender will most likely leave the codebtor alone, as long as you keep up with the repayments.

Filing chapter 13 when you cannot meet chapter 7 requirements

Some bankruptcy filers can’t file Chapter 7 bankruptcy, because they failed the Means Test. Chapter 13 remains as their only last resort. This is the case if both of the following are true:

The monthly income of your recent six months before your bankruptcy filing date is more than the median income for a family of your size in your state.

Your disposable income, after deducting monthly payments for debts and certain expenses you’d have to pay off in chapter 13, exceeds some limits preset by the state law. These calculations happen to be referred to as ‘Means Test.’ They decide whether you hold the means to pay off a certain amount of your financial liabilities through a chapter 13 repayment plan. In case you do, you fail the test and are not eligible for chapter 7 bankruptcy filing.

Recovery Law Group – an experienced and most respected group of bankruptcy lawyers and services, can help you decide which chapter is right for you.

Call them on: +1 888-297-6203.

What are some of the common questions to ask your bankruptcy attorney?

 

If you have a due appointment with a bankruptcy attorney to discuss a potential bankruptcy filing, have these following questions in mind. There are mainly two types of bankruptcy chapters, i.e. Chapter 7 bankruptcy and Chapter 13 bankruptcy. You will want to be sure that you have filed under the right chapter, and this is only possible through an experienced bankruptcy attorney.

The following are some questions that you must ask a bankruptcy attorney –

Must I be filing for bankruptcy?

You must understand that while cases might appear to be similar, however each individual’s situation is different, and unique, so the attorney must listen to every bit of your details that you have got to share. Once you have shared everything, the attorney must provide you with a suitable suggestion that will not only ensure you some momentary debt relief, but actually help eliminate 99% of your pending financial liabilities.

You must be wondering if there’s any alternative to bankruptcy – ask away

Based on your individual circumstance, there might or might not be another way. Only a bankruptcy attorney can give you assurance, but that too after thoroughly reading your case, needs and constraints.

Should I worry about my case?

As mentioned earlier, most cases are of almost similar pattern, and for years, Recovery Law Group has been offering consultations to families, businesses and individuals with utmost dedication and a flexibility of tailored recommendations and services.

We have the most experienced team at work, which can ensure you a smooth transition if or only bankruptcy is your last resort. The only idea behind consulting an experienced bankruptcy attorney is to cut off the risk of worry.

How long is the process going to take?

Chapter 7 bankruptcy usually takes around 3 months, while Chapter 13 last for about 3-5 years as it’s basically a debt repayment plan.

What is the easiest and non-hassle way to reach you at any given time?

An attorney is once hire, they have to make sure that creditors do not bother you again. This will also mean that you could be confident when your phone buzzes or there’s a letter in the mail box, it’s surely not from the creditors.

How will you remain updated?

The attorney must be flexible enough to be connected through all possible and fastest means, such as mobile phone, landline, email, office landline and office address.

What are your fees?

While our team at Recovery Law Group at 888-297-6203 remains competitive throughout, because we know that there are thousands who might need our help, knowledge and assistance to be out of debt-related miseries, we keep our fees competitive.