There is a right time and a wrong time to go bankrupt, you should consider your options carefully.
Bankruptcy is an option, but usually not the only option. Depending on the number and type of creditors you have, you might be able to negotiate payments, interest, or balances, avoiding bankruptcy. This is called a workout, and many creditors have that option. Beware though: forgiven debt could affect your tax responsibilities.
Are you currently unemployed? If you don’t foresee returning to work soon, you’ll probably end up back in debt following your discharge. This answer might change if you are returning to work and your new income won’t cover your obligations.
Bankruptcy might be the right choice, but now may not be the right time. If you recently moved from out of state, the when depends on what you want to keep. Each state has different rules, and the court assigns the rules depending on how much time you’ve spent in each.
When it comes to timing though, everything changes if property you want to keep is about to be seized and sold. If you have notice of a pending lien sale and want to know whether that sale can be avoided, stop reading and call now. 1-800-588-2593. Your situation might require immediate action.
Timing is critical. To figure out when or if it is time, call us today at 1-800-588-2593.
A chapter 7 bankruptcy allows a total discharge of your debts. When you file, the court puts a stay in place that protects you from harassing calls from creditors and stops actions related to your debt such as foreclosures, garnishments, and repossessions.
Chapter 7 bankruptcy filing is only available to those who qualify. The court has created a means-based analysis that is applied to your situation. This doesn’t necessarily mean that even if you have higher income you won’t qualify. You need a skilled practitioner to assess your access to the chapter 7 and then put together your filing. The court is efficient, your filing will be most of what the court will judge. While self-service and bankruptcy filing companies can fill out paperwork, only an attorney can give you advice regarding the law and its applicability to your situation.
Filing for the wrong bankruptcy can cost you valuable time and money and can place your property at risk. Call us today at 1-800-588-2593 to let us assess your individual situation and help you on the path to economic recovery.
What is a chapter 7 bankruptcy and do I qualify?
The bankruptcy laws weigh your ability to pay back your creditors and there are a lot of variables the court considers.
What if I don’t qualify for chapter 7?
Chapter 13 bankruptcy sets up a partial repayment plan lasting as long as 5 years, but over 50% of participants fail to complete their plans.
If you fail the means-test required to file a chapter 7, then your case can be converted to chapter 13. Chapter 13 will assess your ability to repay your creditors and will create a plan that lasts from three to five years. The length of your plan basically comes down to whether you qualify for a chapter 7 (three-year plan) or don’t (five year plan), though all have access to a five year plan when more time is needed. Each month you will be required to remit payment to the trustee who will apportion the payment to your creditors. There are advantages and drawbacks to a chapter 13 plan.
The biggest advantage to a chapter 13 plan is that it can save your home, even if you are behind or in foreclosure. With a chapter 13 plan, you have the opportunity to take your late payments and break them into manageable chunks over the life of the plan. Further, if you are upside-down in your home, chapter 13 can be used to modify and right-size your mortgage.
Where does bankruptcy fit in your future? Call us today at 1-800-588-2593 to setup a consultation.