A quick overview on each type of chapter 7 and chapter 13 bankruptcy is set forth below. A review of that summary may help you. Richard D. Granvold can provide you with his professional advice after reviewing the facts of your situation so call him now: its free!
1. All your assets are exempt or any that are not you do not care about or can do anything about.
2. Your debts are primarily unsecured debts like credit cards or medical bills and not a substantial amount owed in traffic infractions (as opposed to criminal fines) ; in situations in which you have a divorce in which you promised to pay in said divorce certain debts then speak to your attorney on those issues;
3. You cannot afford your unsecured debts after you have attempted to pay your basic normal and reasonable living expenses. You exceed the Chapter 13 debt limits preventing that option. Advantages of Chapter 7
1. Automatic Stay and Discharge.
Once your case is filed with the bankruptcy court, creditors can not contact you and must stop attempts to collect debts including lawsuits, wage garnishments, and all other collection proceedings. Foreclosures are stopped until court approval to continue providing you more time to either live there or make a decision on what to do! The “Discharge” issued by the Court at the end of your case (about 105 days after filing) discharges most debts!
2. Quick Relief.
A chapter 7 case proceeds rapidly through the federal court system. It typically only takes roughly 105 days from case filing until discharge, closure of the case shortly thereafter in most cases.
Most chapter 7 bankruptcy cases cost less than $1000 in legal services needed; (About 5% of cases involve higher income “means test” issues which takes more time and thus more money) Fees can vary depending on where you live . Richard D. Granvold will tell you and then provide you a written contract (quote) before you pay a cent!
Who can file under Chapter 7?
Section §109(a) provides that “only a person that resides or has a place of business, or property in the United States, or a municipality, may be a debtor under this title.”
However, most persons should wait to file a chapter 7 case if you have obtained a discharge in prior chapter 7 filed less than 8 years ago in order to discharge your debts. If you filed a prior chapter 13 less than 6 years ago you should also consult with Richard D. Granvold on the effect of that prior case on your ability to receive a discharge.
If your case involves Gross Income exceeding the commonly called “means test” then Richard D. Granvold can advise you of the options you have also when retained as he assists all debtors! Chapter 13 (Repayment, Partially in most cases, or sometimes in Full)
1. You have equity in property that you don’t want to have to liquidate to pay creditors;
2. You have regular income and can afford to pay your living expenses plus some, but not enough to pay your debts as agreed.
1. Automatic Stay and Discharge.
Once your case is filed with the bankruptcy court, collection activity stops, the interest and penalties stop on unsecured debts in most cases, garnishments and foreclosures stop, repossessions stop or if done, possibly returned, and most non-criminal proceedings stopped. Many persons file to obtain their Washington State Drivers License back within one day!
2. No Liquidation of Property:
In a chapter 13 repayment plan, you can protect your property from being sold to pay creditors.
3. Make One Payment a Month:
You will only have to pay a monthly payment to the bankruptcy trustee over a 3-5 year time period. Your creditors will stop contacting you. Your monthly payment will depend on your budget (in “means test” cases your payment may possibly be affected to). And your options on secured vehicles or homes or other secured debts can be paid over time.
4. Save Your House or Other Property from Foreclosure or Repossession:
You can keep your house or car or secured debts, if you can afford it, but taking time to do so while preventing the secured creditor from repossessing your property. The interest rate may be substantially lowered on personal property and possibly how much you have to pay for your vehicle if purchased more than 2/12 years before filing
5. Protect Co-Signors:
You can use Chapter 13 repayment to prevent a creditor from pursuing money from someone who helped you out by co-signing on a loan for you in some cases. Who can file under Chapter 13?
Section §109(e) provides that only an individual with regular income that owes noncontingent, liquidated (1) unsecured debts of less than $383,175 (amount is subject to change every 3 years pursuant to 11 U.S.C. §104 – the amounts listed are effective as of 4-1-13 to 3-31-16) and (2) secured debts of less than $1,149,525 or a married couple with regular income that owe less than the above disclosed amounts may be a debtor under chapter 13. By “individual”, it means only an individual or married couple can file a chapter 13, not any corporation or partnership.