As mentioned, there are many individuals who simply do not qualify for Chapter 7 filing status, which leaves a Chapter 13 as the only viable alternative. As the bankruptcy laws stipulate, an individual cannot file a petition for Chapter 7 bankruptcy if two conditions exist regarding their particular situation. The first is their monthly income over the previous six months prior to their petition filing date is greater than the ‘median income’ for a household of a specific size in that particular state of residency. In addition, their ‘disposable income’, after subtracting specific expenses and monthly payments for debts they are obligated to repay in Chapter 13, is greater than the specific limits set by the laws in that state. These computations are generally referred to as the ‘means test’. Roughly translated, if the individual has the resources to repay a certain amount of their debt within a court-monitored Chapter 13 repayment plan, they would therefore fail the means test, making them ineligible for filing a Chapter 7 petition.
Source: topofutahlaw.com
Video: Game of Thrones Walkthrough – Part 13 (Chapter 7) (1/2) “Mors – Stray Dog”
Bankruptcy Attorneys Explain Benefits of Chapter 7, 11, 13an
The Lanigans are based in Winter Park but work with clients throughout Florida in cities from Altamonte Springs to Boca Raton to Cape Canaveral, Clearwater, Cocoa Beach, Daytona Beach, Deland, Deltona, Fort Lauderdale, Fort Meyers, Gainesville, Heathrow, Jacksonville, Jupiter, Kissimmee, Lake Mary, Maitland, Melbourne, Miami, Mount Dora, Naples, New Smyrna Beach, Ocoee, Orlando, Palm Beach, Sanford, St. Petersburg, Tampa, The Villages, Vero Beach, Windermere, to Winter Springs. If there is a city not listed, be sure to call to find out if the Lanigans serve your area.
Source: laniganpl.com
IS IT BETTER TO FILE A CHAPTER 7 OR A CHAPTER 13 BANKRUPTCY?
In a Chapter 13 bankruptcy, a petitioner can save his house if he can make the payments. He can also strip an unsecured second mortgage from his house or car in some instances. You will also be better able to keep non-exempt property. You can also discharge property settlement debts from a prior divorce in a Chapter 13. So if you get divorced and per the terms of the divorce you assume responsibilities for certain debts, you may be able to discharge not only the underlying debt that is assumed but also your liability to your former spouse.
Source: consumerlawinvirginia.com
The Big Decision: Chapter 7 v. Chapter 13 : Texas Bankruptcy Blog
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is helpful for debtors who primarily hold unsecured debt, such as credit card expenses, and who don’t have a lot of leveraged assets, such as a home or car. Also, Chapter 7 debtors must pass a statutory “means test” in order to qualify for liquidation bankruptcy. For young workers who are just starting out in life or for an older family that was unexpectedly slammed by medical expenses, Chapter 7 relief may be right for you.
Source: txbankruptcyblog.com
Chapter 7 vs. Chapter 13 Bankruptcy: Which is right for you? Experienced Bankruptcy Attorney in Louisville, KY Spalding & Spalding Law Office
Chapter 13 bankruptcy is, in essence, the creation of a payment plan for your debts. This payment plan usually lasts 3-5 years. In the plan, you agree to pay a certain amount of money per month or per week (depending on your paycheck) for a specified length of time to pay off your debts. This plan is proposed by you (and/or your lawyer) and puts forth what you can afford. It is then reviewed by the court, who decides whether or not to approve it. Depending on your financial situation, your plan may require you to pay anywhere from 100 cents on the dollar to one cent on the dollar. If your plan is reasonable and the court approves it, this plan goes into effect for the time specified. At the end of that time (usually 5 years), you are finished with the plan, and you no longer have to pay your creditors: you’re debt-free.
Source: wallacespalding.com
What Bankruptcy is Right for Me?
Chapter 7 Bankruptcy Chapter 7 bankruptcy consists mainly of a liquidation process whereby a portion of your assets are sold to pay off debt obligations. Often referred to as individual or consumer bankruptcy, this form of bankruptcy can often take anywhere between 3 to 6 months to complete. A court appointed trustee will often sell property that secures your debt in order to pay off your creditors. You get to retain some of your personal items, including household furnishings, clothing and other possessions – this can sometimes include even your car and your home as long as their value doesn’t exceed certain limits set by the U.S. Bankruptcy Code. To be eligible for Chapter 7, the filer must either have a median family income level that falls below the national average or else pass a means test that determines if the margin of excess income exceeds that allowed by the bankruptcy code.
Source: freshstartlaw.com
Differentiating Between Chapter 7 and Chapter 13 Bankruptcy
Here again, the main benefit of Chapter 13 over Chapter 7 is that the petitioner will be able to keep his properties that would or else be sold off to repay the unsecured creditors whom you owe money. A debtor who will file Chapter 7 can only retain the non-exempt properties by paying the trustee with the cash value of the property. You can repay your debt according to the new repayment plan that will be set by the Bankruptcy court. You can even feel satisfied about paying back a portion of your debt through this type. You can classify your creditors according to the priorities but only if this is accepted and allowed by the court. The automatic stay that will be imposed on the debtor will also be extended to the co-debtors who have even guaranteed the loan on behalf of the debtor.
Source: thestudentappeal.com
Chapter 7 is better than Chapter 13
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Video: Lawyer On Chapter 7 vs. Chapter 13 Bankruptcy
The Law Offices of Lutzky & Labayen, LLP, Is a debt relief agency as that term is defined under the federal bankruptcy laws. We provide help and assistance to individuals seeking relief under chapter 7 and chapter 13 of the bankruptcy code.
Source: bankruptcynyc.com
Do Not File Chapter 13 if What You Need is Chapter 7
At first blush it appears that this lady was encouraged to file Chapter 13 when she really needed to be in Chapter 7, and that the only really beneficiary here is her lawyer. On the other hand, what options did she have if she needed bankruptcy protection to stop a wage garnishment but she did not have the money to file Chapter 7? Bankruptcy judges around the country have generally held that attorneys may not “finance” Chapter 7 fees by taking post-dated checks or post-filing installments. Should the lawyer be vilified because his client waited far too late to seek bankruptcy counsel and a low entry-fee Chapter 13 is the only practical option?
Source: bankruptcylawnetwork.com