With Chapter 7 bankruptcy, the goal is to eliminate the debt. Typically, the person filing does not lose any assets. Occasionally someone will file knowing they will lose an asset but decides to file anyway because of the amount of debt they owe and they cannot afford to pay the equivalent value of that asset in a chapter 13.
WHERE YOU LIVE CAN IMPACT THE TYPE OF BANKRUPTCY YOU CAN FILE
Where you live can impact the type of bankruptcy you can file. That is because several years ago, Congress determined that in deciding whether a debtor can wipe out their debt entirely or must pay some of the debt back, there should be more focus on a debtor’s income
Can bankruptcy help with student loans?
It should be noted that Chapter 7 and Chapter 13 bankruptcy doesn’t generally discharge Student loan debt, although there are exceptions for Undue Hardship. In addition bankruptcy can impact certain private student loans. Chapter 13 can also be used to hold off on student loan collection during the five year chapter 13 plan.
Trenton Laundromat Closes and files Chapter 7 Bankruptcy
Undoubtedly the Pandemic hitting just one year after formation had a major impact on the Laundromat. Although both individuals and companies can file a Chapter 7 bankruptcy, there are generally more issues in a Chapter 7. For one, with a business there is often assets to be liquidated. When an individual files bankruptcy, no assets are typically sold because individuals are allowed to exempt (protect) a lot of their assets.
Bankruptcy Can Help with Delinquent Utilities
If you are able to file a Chapter 7 to eliminate unsecured debt, then any outstanding utility bills can be included and eliminated as well. Similarly, if you are paying a reduced amount to your unsecured creditors in a Chapter 13, the Utility Companies can be treated the same way.
McDowell Law Equal Justice Award
Your knowledge and experience with Chapter 13 and Chapter 7 benefitted your clients
How do you decide if Chapter 7 or Chapter 13 bankruptcy is best?
Chapter 13 Bankruptcy can be used to pay missed mortgage or car payments over time
When can you file for bankruptcy after a previous discharge?
Federal laws do limit what kind of bankruptcy you can file based on your economic circumstances and also how frequently you can file.
Why do you need to pass a means test for Chapter 7 bankruptcy?
There are many different kinds of bankruptcy, but the average individual will likely choose between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Both of these forms will provide an automatic stay to temporarily stop collection activity. If successful, both Chapter...
Bankruptcy after a divorce may help gray divorcees
Sometimes, going through your divorce first is the right option, so that you can see if you end up with debts that you may have shared with your spouse or that your spouse created in their own name while married. The financial devastation that a divorce can cause is hard to recover from at such a late age, but a bankruptcy could offer a helpful solution.