The number one question for potential clients.
Sun, Nov 30 2008 09:49
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Anyone considering filing a bankruptcy should definitely keep this entry bookmarked. We get a call at least three times a week asking us whether or not someone should file a chapter 7 or chapter 13 bankruptcy. I would like to start out by answering that you really do not have a choice. For example if you file a chapter 7 bankruptcy and after reasonable living expenses are paid, there is money left over to pay off a portion of your debt the trustee would file a bad faith objection and deny your chapter 7 bankruptcy. The reverse is also true, if you file a chapter 13 bankruptcy and you do not make enough money to make the payments in the plan the trustee can file an objection in this instance also. To simplify this question with an example would probably be of more use just get an understanding of the subject matter.
Lets say for example you had signifcant equity in your home and car but had an insurmountable amount of credit card debt and you just cant keep up with the monthly payments. You decide to file a chapter 13 bankruptcy so you can make sure you can keep your house and car and just pay a portion of your credit card debt over a five year period. If the trustee calculates that you can't make the payments in the plan after all of your other expenses, your chapter 13 will be denied.
In many cases with todays real estate market what is common is that potential debtors file chapter 7 bankruptcy and keep their houses and cars because there is no equity there or are within the exemption amounts and just discharge their credit card debt and keep up with their payments. For more detail on this visit http://www.bankruptcysupersite.com. So to make a long story short if you have a car or house without much equity you can file a chapter 7 bankruptcy and discharge your unsecured debt as long as your income falls withing the federal guidelines of the means test. You can get more detail on the means test at http://www.bankruptcysupersite.com. For more detailed questions you can call us at http://www.teamlegalchicago.com for a free telephone consultation 773-685-9138.
Lets say for example you had signifcant equity in your home and car but had an insurmountable amount of credit card debt and you just cant keep up with the monthly payments. You decide to file a chapter 13 bankruptcy so you can make sure you can keep your house and car and just pay a portion of your credit card debt over a five year period. If the trustee calculates that you can't make the payments in the plan after all of your other expenses, your chapter 13 will be denied.
In many cases with todays real estate market what is common is that potential debtors file chapter 7 bankruptcy and keep their houses and cars because there is no equity there or are within the exemption amounts and just discharge their credit card debt and keep up with their payments. For more detail on this visit http://www.bankruptcysupersite.com. So to make a long story short if you have a car or house without much equity you can file a chapter 7 bankruptcy and discharge your unsecured debt as long as your income falls withing the federal guidelines of the means test. You can get more detail on the means test at http://www.bankruptcysupersite.com. For more detailed questions you can call us at http://www.teamlegalchicago.com for a free telephone consultation 773-685-9138.
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