Do I have to be behind on my bills to file bankruptcy (chapter 7, chapter 13, or chapter 11)?
FAQ'sNO! Often people file bankruptcy before they are seriously delinquent on their monthly debts. If you can barely make the minimum payments required on your credit cards, or if it appears that you will not be able to make payments as they come due, it may be better for you to file bankruptcy rather than let your situation deteriorate. YES! A federal injunction (automatic stay) goes into effect immediately when a person files bankruptcy, which stops the foreclosure.
Related QuestionsWhat is the difference between Chapter 7, 11, and 13 bankruptcy?
Rodney L. Dillon: Florida Attorney, Bankruptcy Law, Chapter ...In a typical Chapter 7 bankruptcy (also known as liquidation), a trustee collects the nonexempt property of the debtor, converts the property to cash, and distributes the cash to the creditors. In contrast, Chapters 11, 12, and 13 of the Bankruptcy Code contemplate debtor rehabilitation. In a rehabilitation case, creditors look to future earnings of the debtor, not to the current property of the debtor.
Related QuestionsShould I file a Chapter 13 or Chapter 7 Bankruptcy?
Frequently Asked QuestionsYou must ultimately decide for yourself whether filing bankruptcy is the proper action to take, and if so, which Chapter is better for you. If you are not making more money than you need for your current living expenses, Chapter 13 is not a realistic option. Chapter 7 has the advantage of wiping the slate clean and enabling you to embark on your "fresh start" immediately; whereas with Chapter 13 you will be making payments for three (3) years or more.
Related QuestionsQ Why would I file a Chapter 13 and not a Chapter 7?
Burns & Wincek Ltd - Bankruptcy FAQYou typically file a Chapter 13 if (1) you are behind on a house or a car and you want to keep it, (2) you recently filed a Chapter 7 and can’t file another one, (3) you are making too much money to file a Chapter 7 or (4), you have some kind of property that would not be protected in a Chapter 7.
Related QuestionsHow often can I file a Bankruptcy? How long will I be in Chapter 7 or 13?
Martin Garfinkel, Attorney at Law - Questions about bankrupt...Chapter 7 Bankruptcy usually takes about 4-5 months, although your creditors cannot attempt to collect on the debts once your case is filed. A Chapter 13 case takes from 3 to 5 years to complete.
Related QuestionsWHAT IS CHAPTER 7 BANKRUPTCY?
Law Offices of Brad Kurlancheek - Northeastern Pennsylvania ...Bankruptcy is a procedure brought in federal court. About 6 months after your case is filed, the bankruptcy court in the area where you reside will issue an Order declaring all your unsecured debts discharged. That means your unsecured creditors which you had before you filed bankruptcy will then forever be barred from contacting you ever again to collect on a debt.
Related QuestionsGarretson Law Office FAQYou must reside or have a domicile, a place of business, or property in the United States or a municipality. You must not have been granted a Chapter 7 discharge or completed a Chapter 13 plan within the last 6 years . You must not have had a bankruptcy filing dismissed for cause within the last 180 days. It must not be a "substantial abuse" of bankruptcy to grant the debtor relief. Last, it would not be fundamentally unfair to grant the debtor relief under Chapter 7 or Chapter 13.Related Questions
FAQ'sIf you are able to make any meaningful payments (even a relatively small percentage of payments) to your unsecured creditors (in addition to your normal living expenses), you will probably be required to file a chapter 13 bankruptcy instead of a chapter 7 bankruptcy.Related Questions
Bankruptcy FAQ & Divorce FormsA debtor must reside or have a place of domicile, a place of business, or property in the U.S. and must not have been granted a Chapter 7 discharge within the last 6 years or not have completed a Chapter 13 plan withing the last 6 years, and must not have had a bankruptcy filing dismissed for cause within the last 180 days (6 months). NO! Often, debtors who 'see the handwriting' on the wall, file chapter 7 before they are seriously delinquent on their monthly debts.Related Questions
Bankruptcy PreparationMost people file chapter 7 bankruptcy because they are overextended on any of the following: Credit card debts, medical bills, collection accounts, lawsuits, judgments and more. If you can pay your bills without problems, then bankruptcy is not for you. On the other hand, if you are facing serious financial problems, then filing chapter 7 bankruptcy is nothing to be ashamed of.Related Questions
Barry Evan Schklair - Law FirmIn a Chapter 7 case your dischargeable debts are completely eliminated and you only continue to pay for any home mortgage, auto loan or other secured loan on property you wish to keep. You do not pay unsecured creditors such as credit card companies, old medical and utility bills or unsecured loans - those debts are erased. In contrast, a Chapter 13 proceeding provides that you make at least some payment, to all your creditors, in accordance with a plan designed by you and your lawyer.Related Questions
Who can file a chapter 13 bankruptcy petition?
on the date the petition is filed owe less than $290,525 in noncontingent, liquidated, unsecured debts and less than $871,550 in noncontingent, liquidated, secured debts. (as of 4/1/01) If you filed a prior bankruptcy petition and the prior proceeding was dismissed within the last 180 days, you may not be able to file a second petition.
Related QuestionsBack to Top What is the difference between a chapter 7 and a chapter 13 bankruptcy?
Frequently Asked QuestionsBankruptcy is a legal proceeding in which people who cannot pay their debts can get a fresh financial start. The right to file for bankruptcy is provided by federal law and all bankruptcy cases are handled by in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law. Most people filing bankruptcy will file under either chapter 7 or chapter 13.
Related QuestionsWhat is Bankruptcy? Chapter 7 vs. Chapter 13?
San Diego Bankruptcy Attorney and Debt ReliefA Chapter 7 bankruptcy may enable you to get rid of all your unsecured debts. In most cases, if you have barely enough or less than enough income to live on, not counting payment of your credit card (and other unsecured) debts, you can make all of your credit card debts go away. If, however, when you look at your monthly budget you have a significant amount of cash left over without paying your credit card (unsecured) debts, you will not be permitted to proceed with a Chapter 7 bankruptcy.
Related QuestionsWhat is a consumer bankruptcy case? What are the differences between Chapter 7 and Chapter 13?
Frequently Asked Questions: Illinois Lawyers: Lakelaw Bankru...Chapter 7 allows you to eliminate almost all of your debt. A trustee will be appointed to determine if any of your assets should be sold. However, most chapter 7 debtors can use exemptions to protect their assets. In addition, assets which are subject to liens, like your house or car, in many cases, will not be sold by a bankruptcy trustee. So if you reaffirm these debts, you stand a good chance to be able to keep these assets.
Related QuestionsWhat are the differences between Chapter 13 and Chapter 7 bankruptcy?
Debt Consolidation and Debt Relief from DebtConsolidationLoa...Chapter 13: A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause.
Related QuestionsUp 43. What is chapter 7, 11, 12, and 13?
Bankruptcy FAQ - Expert answers to Frequently Asked Question...Chapter 7 is the most frequently used chapter because it involves the complete liquidation of a debtor's property, with the proceeds used to pay off the debts. However, the debtor can retain certain exempt property under Federal law and/or State law, such as tools of one's trade, limited equity in a car and house, and some personal effects. If you use Chapter 7 you may lose your home (depending on your state) but it does enable you to get out from under the burden of debt more quickly.
Related QuestionsWhat happens if I file a chapter 7 bankruptcy?
Bankruptcy PreparationA chapter 7 bankruptcy is commenced by filing a petition and 30 or more pages of additional paperwork detailing your financial situation. Immediately upon filing, your creditors are prohibited from bothering you or attempting to collect on the debts. A trustee is appointed by the court to review your filing and to recommend to the court that your debts be discharged, that is, wiped out. About 4 to 5 weeks after filing, you have to appear for a trustee meeting which is mostly a formality.
Related QuestionsWhat property can I keep if I file a Chapter 7 Bankruptcy?
Online Brandon Lawyer, Florida legal services. Tampa lawyerYou are only allowed to keep your exempt assets when you file a Chapter 7 Bankruptcy. Florida has opted out of the Federal exemptions. Therefore, we must look to Florida law to determine which assets are exempt. Most of the exemptions can be found in Florida Statute Chapter 222. However, there are still some federal exemptions which apply to Florida residents and they can be found in 11 U.S.C. '522 (d) (10).
Related QuestionsWhy do consumers file Chapter 7 bankruptcy?
Bankruptcy FAQ & Divorce FormsAlthough you are not required to state a reason or explainwhy you are filing bankruptcy, the most common reasons for consumer bankrupcy are often beyond the control of the individual debtor:
Related QuestionsWhy would a debtor choose to file chapter 13 over chapter 7?
Debtor FAQs & Creditor FAQs | Cary Bankruptcy Lawyer, Chapte...Under certain circumstances a debtor may be able to modify a secured debt such as a vehicle or mobile home. The debtor may have the need for bankruptcy relief for future bills and wants to hold open the possibility for conversion or refilling [e.g. anticipated medical bills].
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