Under chapter 7, you do not pay back to your unsecured creditors and you are done with your bankruptcy in about 4 months. 75% of bankruptcies are Chapter 7 and is usually the better alternative. If you have been told by another attorney that you do not qualify for chapter 7, make sure you talk to us. We have obtained chapter 7 discharge to many clients who were advised by other attorneys that they do not qualify for chapter 7. We only practice Bankruptcy so we know how to use every deduction and expense to keep you in a chapter 7 if that is to your advantage.
You can file under chapter 7 bankruptcy, also known as a straight bankruptcy, if your annual household income is below the median family income and most or all of your assets are exempt. Even if your income is above the median income, you may still qualify under the second portion of the Means Test base on your detailed expenses on secured property such as your house and vehicles, back tax obligations and other expenses.
Under chapter 13, you pay back to your creditors over a period of 3 – 5 years your disposable income. You are done with your bankruptcy in 3 – 5 years. 15% of bankruptcies are Chapter 13 and is usually prefered if you are trying to protect a house you have fallen behind on but have the ability at this time to catch up by making payments.Under chapter 13, You also have the ability to strip the 2nd mortgage on your house if that 2nd mortgage is entirely unsecure. While this is usually desirable, you still have to be able to make the 1st mortgage payment, and be able to get current with any payments that you had fallen behind.
In certain circumstances, Bankruptcy may not be a viable option. Could be because you have too much assets, you make too much money, your income is high now but not very stable. In these circumstances, we can help you negotiate a settlement with your creditors either prior to a lawsuit or even after a lawsuit has been filed.