If you are swimming in credit card debt and missing payments bankruptcy may be the right option for you. There are several types you can file for the main ones are Chapter 7, chapter 11 and chapter 13. If you are an individual (not a major company) then you going to want to look into Chapter 7 or chapter 13.
Chapter 7
Chapter 7 is the first option that most individuals look at. It used to be one of the easiest bankruptcies to get approved for, though now under the new bankruptcy laws, it can be a bit more difficult.
Bankruptcy Counseling, Kansas Bankruptcy Lawyer, Fort Lauderdale Bankruptcy Lawyer,
Under chapter 7 bankruptcy you must take a means test, which will add your gross income and assets and deducting your liabilities and expenses in the last six months. Then those numbers are compared with the average median income, in your area. If you meet the requirements you can then file for chapter 7, if not you will have to look into chapter 13.
If your receive a Chapter 7 discharge you debts are wiped out by the court except:
-debts that automatically survive bankruptcy-Child support, tax debts and student loans.
-debts that the court has declared non discharged because of the creditors objection-debts incurred by your fraud or malicious acts.
Chapter 13
With chapter 13 bankruptcy you will not be wiping away your debts, instead you will be devising a plan to pay them back, possibly at a lower interest rate and over a longer period of time.
Before you can file you must take a credit counseling class. You will receive a certificate at the completion of your counseling sessions. You must file this certificate with the court, along with a packet of forms listing what you own, earn, owe and spend. Also needed will be your federal tax return for the previous year and proof that you filed both federal and state tax returns for the past four years.
A bankruptcy attorney can really help you with both chapter 7 and chapter 13. With chapter 7 they can help overcome the new bankruptcy laws and with chapter 13 they can help you devise an appropriate repayment plan
Usually most individuals will try to file on chapter 7 so they can get their debts discharged it also takes less time than chapter 13.
The main problem with chapter 7 is that the laws are much stricter now and with out the help of a bankruptcy lawyer, it will be much harder to be approved. Chapter 13 is much easier to get approved for.
Finally with Chapter 7 you may loose most your assets to the court to satisfy your creditors, with chapter 13 you have more control and can keep more assets. This is because chapter 13 is a repayment plan over 3 to 5 years, instead of just a clean slate.
Bankruptcy Lawyers In Cleveland Ohio
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Lawyers In Cleveland Ohio
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment