Chapter 7 is a bankruptcy that lasts only a few months. You pay directly for what you want to keep and do not pay for your things through the Court. There are no monthly Court payments. You generally wipe out all the other debt, and keep only what you want to.
What is a Chapter 7 discharge?
A Chapter 7 Discharge is when, at the completion of your case, most or all of your debts are wiped out and you do not have to pay the debts.
What debts are not released by a Chapter 7 discharge?
Generally: taxes, student loans, domestic support obligations and debts associated with criminal matters are not discharged.
Who may file under Chapter 7?
Anyone that has not filed a chapter 7, or a case that was converted to a Chapter 7, in the prior eight years.
How much does it cost to file under Chapter 7?
The cost varies, as every case is individual and different. However, the consultation to discuss your options with us is free.
Under what conditions should a husband and wife both file under Chapter 7?
If there are joint debts that the other will be responsible for if only one spouse files bankruptcy, or if the total amount of debt for the household is still too great for the couple to handle if one spouse only files.
Will a person lose all of his property if he files under Chapter 7?
NO! This is one of the great myths of bankruptcy. Most of our clients in a Chapter 7 keep what they want to.
What are the debtor’s responsibilities to the trustee?
To truthfully disclose all income, assets and debts, and provided certain documentation, such as tax returns and paystubs.
What happens if the debtor has no nonexempt property for the trustee to collect?
Non exempt property is property that can not be protected in a bankruptcy. If you have no nonexempt property, there is nothing that a Trustee can take from you. If you have non exempt property, you can still protect your property in a Chapter 13.
What is a chapter 13 bankruptcy case and how does it work?
A Chapter 13 is a case that lasts for three to five years and requires monthly payments to the Bankruptcy Trustee. It is sometimes called a reorganization.
How does a chapter 13 case differ from a chapter 7 case?
A Chapter 13 lasts longer because you are paying for things you want to keep through the Bankruptcy Court. It requires monthly payments, which usually are less than the payments you were making. We can often save our clients hundreds of dollars a month and thousandths of dollars overall.
When is a chapter 13 case preferable to a chapter 7 case?
Most commonly you would prefer a Chapter 13 when you are behind on something you want to keep, when you want to lower payments on what you want to keep, or if you are being sued over past due taxes, student loans, alimony or child support.
What is a chapter 13 discharge?
A Chapter 13 Discharge is when, at the completion of your case, most or all of your debts are wiped out and you do not have to pay the debts.
What types of debts are not dischargeable in a Chapter 13 case?
Generally: taxes, student loans, domestic support obligations and debts associated with criminal matters are not discharged. Usually the taxes are paid through the Chapter 13, preventing judgments and garnishments. Often, student loan and child support arrears can be paid through the Court to keep you from being garnished or losing your drivers license.
What debts may be paid under a chapter 13 plan?
Most any debts can be included in your Chapter 13 repayment plan.
Must all debts be paid in full under a chapter 13 plan?
NO! This is one of the myths of bankruptcy. Very few people have to pay all of their debts through a Chapter 13.
How much of a debtor's income must be paid to the chapter 13 trustee under a chapter13 plan?
All “disposable” income. We take your bring home income, and subtract what is necessary for you to pay your monthly living expenses. The remaining amount is your “disposable” income.
How long does a chapter 13 plan last?
Three to five years, unless you pay off all of your debts before 36 months have passed.
Who is eligible to file a chapter 13 case?
Almost everyone is eligible to file a Chapter 13 case. Only people with unsecured debt of more than $394,725 or secured debt of more than $1,184,200 can not file a Chapter 13.
May a husband and wife file a joint chapter 13 case?
Yes. They can file jointly or separately. Usually it is better to file together, but, under some circumstances it is better to file separately.
May a chapter 7 case be converted to a chapter 13 case?
It can, and sometimes a Chapter 13 be converted to a Chapter 7