Is Chapter 7 or 13 better?
Is Chapter 7 or 13 better?
For many debtors, Chapter 7 bankruptcy is a better option than Chapter 13 bankruptcy. For instance, Chapter 7 is quicker, many filers can keep all or most of their property, and filers don’t pay creditors through a three- to five-year Chapter 13 repayment plan.
Can I keep my house if I convert from Chapter 13 to Chapter 7?
Many people file for Chapter 13 to retain property. Under certain circumstances, the court can force you to convert your Chapter 13 bankruptcy to Chapter 7 so that your nonexempt assets can be sold to pay your creditors.
What debts can be forgiven in Chapter 7 bankruptcy?
A Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start.
What types of debt Cannot be forgiven under Chapter 7 bankruptcy?
Non-Dischargeable Debt
- Debts that you left off your bankruptcy petition, unless the creditor actually knew of your filing;
- Many types of taxes;
- Child support or alimony;
- Fines or penalties owed to government agencies;
- Student loans;
- Personal injury debts arising out of a drunk driving accident;
What happens to my bank account when I file Chapter 7?
In most Chapter 7 bankruptcy cases, nothing happens to the filer’s bank account. As long as the money in your account is protected by an exemption, your bankruptcy filing won’t affect it.
What is the income limit for Chapter 7?
If your annual income, as calculated on line 12b, is less than $84,952, you may qualify to file Chapter 7 bankruptcy. If it’s greater than $84,952, you’ll have to continue to Form 122A-2, which we’ll review in the next section. It should be noted that every state has different median income calculations.
Does Trustee check your bank account?
Please be aware that your trustee does not have access to your personal account. A separate account is opened to manage your bankrupt estate.
What Cannot be filed under Chapter 7?
Debts Never Discharged in Bankruptcy Alimony and child support. Certain unpaid taxes, such as tax liens. However, some federal, state, and local taxes may be eligible for discharge if they date back several years. Debts for willful and malicious injury to another person or property.
What bankruptcy Cannot forgive?
Some examples of debts that are not forgiven by Chapter 7 bankruptcy include the following: Student loans. Child support or alimony payments. The majority of taxes you owe.
Do they freeze your bank account when you file Chapter 7?
An individual filing for bankruptcy under Chapter 7 may face an account freeze by a bank. You can let the bankruptcy trustee know about the freeze and ask them to get the bank to release the freeze.
Will I lose my tax refund if I file Chapter 7?
A tax refund is an asset in both Chapter 7 and Chapter 13 bankruptcy. It doesn’t matter whether you’ve already received the return or expect to receive it later in the year. As with all assets, when you file for bankruptcy, you can keep your return if you can protect it with a bankruptcy exemption.
Is Chapter 13 bankruptcy better for my credit than Chapter 7?
A completed Chapter 13 bankruptcy can stay on your credit reports for up to seven years from the date you file. But some creditors could view a Chapter 13 bankruptcy more favorably than a Chapter 7 bankruptcy. It could be an indication that you repaid more of your debt.
Can you file Chapter 7 bankruptcy after filing Chapter 13?
You can’t file for Chapter 7 bankruptcy if you previously went through bankruptcy proceedings under Chapter 13 within the last six years. If, however, you obtained a Chapter 13 discharge in good faith after paying at least 70 percent of your unsecured debts, the six-year bar doesn’t apply.
What does Chapter 7 or 13 mean in bankruptcy?
Chapter 13 bankruptcy is a plan that allows an individual or sole proprietor to reorganize and pay is debts without liquidating assets . Debtors must meet certain criteria to qualify for Chapter 13 instead of Chapter 7. Debtors who qualify will be put on a three- or five-year payment plan to discharge their debts.
Can you file both a Chapter 7 and a chapter 13?
Chapter 7 will not protect the co-signer. Anyway, to answer your question, no you cannot file a Chapter 7 and Chapter 13 at the same time. Sounds to me like you should get the opinion of another lawyer in your area.
