DO I NEED TO QUALIFY FOR A CHAPTER 7 OR 13 BANKRUPTCY?

Ever since the new regulations took effect in 2005, many people are worried that they no longer qualify for a Chapter 7 bankruptcy. However, over, 90% of the people who qualified for a Chapter 7 bankruptcy prior to 2005, would still qualify today. The major obstacle in a Chapter 7 bankruptcy is the means test. The means test was designed to ensure that only people under a certain income level could file for Chapter 7 bankruptcy. Generally, a single individual living alone must make under $47,000 a year in order to qualify, however that figure is constantly changing so consult a bankruptcy attorney today for an exact amount. If you have additional people living in your house such as a spouse or children, then the income level will rise with each additional person. If you are over the income amount, this does not necessarily mean you cannot file a Chapter 7 bankruptcy as there are still ways to qualify.
In order to qualify for a Chapter 13 bankruptcy, you muct have regular income and secured and unsecured debts under specific amounts. Without regular income, an individual would have no money to repay the creditor, thus defeating the purpose of a Chapter 13 bankruptcy. Contact our experienced bankruptcy attorneys today for a free consultation.

THE DIFFERENCE BETWEEN A CHAPTER 7 AND CHAPTER 13 BANKRUPTCY

Many of the potential clients I receive calls from do not understand the differences between a Chapter 7 and Chapter 13 bankruptcy, nor which one would benefit them more. I would say in at least 95% of cases, a Chapter 7 is more beneficial to an individual debtor. A Chapter 7 bankruptcy offers a complete discharge of all debts that are allowed to be included by the courts, meaning, the debtor will no longer be liable to any of the creditors in the cases. In a Chapter 13 bankruptcy, a debtor agrees to repay as much of the debts as they can over a few years, at the end of which, any outstanding balance will be discharged. Many people wonder why anyone would ever file a Chapter 13 bankruptcy, given the greater benefits of a Chapter 7, however, in some circumstances, filing a Chapter 13 may be the debtor's only choice. In order to qualify for a Chapter 7 bankruptcy, your annual income needs to be under a certain level, otherwise, you cannot file. In addition, debtors with assets above the exemtpion limit, or who are behind on their house payments, but wish to catch up, can use a Chapter 13 to retain possession of their house and bring their mortgage current. Finally, some debts can be included in a Chapter 13 bankruptcy that cannot be included in a Chapter 7. Contact our law office today to learn if you qualify for Chapter 7 bankruptcy and which option would serve you properly.

WCZ
http://www.westmontattorneys.com/