Bankruptcy

HOW OFTEN CAN I DO A CHAPTER 13?

A Chapter 13 can be done every 6 years and the qualifications are more lenient because it is a payment plan. Remember, a Chapter 13 can also reduce debt and sometimes discharge debt based on your ability to repay the debt. This is a viable option for those who do not qualify for a Chapter 7.

CAN I DO A CHAPTER 13 FOR MY SECOND MORTGAGE ONLY?

If you are delinquent on the 2^nd mortgage, you could do a Chapter 13 for this mortgage, but remember both mortgages must be paid. This is a payment plan and your ability to repay is assessed so that you can keep your home.

CAN I DO A CHAPTER 13 BANKRUPTCY TO SAVE MY HOUSE?

Yes, if you are employed and want to pay for your mortgage arrears over a 3 or 5 year period, then this may be the right bankruptcy for you. You can also include other debt such as credit card debt or personal loans.

CAN I STOP A FORECLOSURE BY A CHAPTER 7 OR 13 BANKRUPTCY? continue reading...

CAN I DO A CHAPTER 13 BANKRUPTCY IF I DON’T QUALIFY FOR A CHAPTER 7?

Yes, often people who do not qualify for a Chapter 7 (their income is above the maximum for the number of people in the household) can qualify for a Chapter 13. A Chapter 13 is a payment plan and because of this you must be employed in order to qualify for this type of bankruptcy. The payment plan is based on your ability to pay.

HOW OFTEN CAN I DO A CHAPTER 7 BANKRUPTCY?

You can do a Chapter 7 Bankruptcy every 8 years from the date of filing. This time frame is strictly adhered to and it must be 8 years to the month and day. It is a good idea to keep your discharge papers in a safe place so that you are sure of your bankruptcy date.

IF I HAVE A CREDIT CARD WITH ONLY MY NAME ON IT—IS MY DEBT STILL CONSIDERED COMMUNITY PROPERTY?

Yes, this debt can still be considered community debt if the debt was acquired during the marriage and when you were not separated. The fact that a credit card has only one name on it does not mean that the debt would not be considered community debt.

WHEN I COME TO MY CONSULTATION FOR BANKRUPTCY, WHAT DO I NEED TO BRING WITH ME?

You should bring your most recent tax return as well as verification of your income to your consultation with the attorney. You should also bring any statements or invoices of your debt that you may have. The attorney will check your credit report, but you want to make sure that all of the debt is available for the attorney to assess.

WILL A CHAPTER 7 DISCHARGE ALL MY DEBT?

Once you qualify for a Chapter 7 Bankruptcy, all applicable credit card debt can be discharged. Other debt such as certain tax debt, medical debt and personal loans can also be discharged. Your attorney will go over each debt and let you know which is dischargeable.

SHOULD I FILE FOR BANKRUPTCY BEFORE OR AFTER THE DIVORCE?

A married couple can file for bankruptcy for the same fee as a single person. Debt that is acquired during the marriage (when not separated) is usually considered community debt. Creditors can go after your spouse if you file for bankruptcy alone. In short, if your spouse agrees to file, it is less expensive and better to file for bankruptcy as a couple before you divorce so that both you and your spouse can be assured that the debt is discharged.

A bankruptcy attorney should be experienced as well as efficient at completing the paperwork. An experienced attorney knows the questions to ask and different ways to solve problems.  Some people may be facing foreclosure and wish to find a way to keep their home. Others may have too much debt and have just lost their job. Still others may have a moderate amount of debt, but not enough income with which to live and also repay debt.  continue reading...