Whatever amount is left at the end of your repayment period will be discharged wiped out. You'll likely have to give up all of your credit cards if you file for Chapter 7 bankruptcy, but you can start rebuilding your credit once your case is closed. If you file for bankruptcy, you might not be able to get rid of recent cash advances or credit card charges for luxury items. If you use your credit card to buy luxury goods before you file bankruptcy, you run the risk of having to repay the debt.
I just put some big charges on my credit card. Should I wait to file for bankruptcy? Learn what you should know about filing for bankruptcy after recently using your credit cards.
View More Articles. If you run up your credit card balances right before filing for bankruptcy, the debt might not be wiped out by your bankruptcy. Do I have to surrender credit cards at my bankruptcy hearing? In general, you are not required to surrender your credit cards at your bankruptcy hearing also called the meeting of creditors. But alimony, child support, and a few other debts are never dischargeable in bankruptcy. You must meet income requirements to qualify to file a Chapter 7 bankruptcy case.
If your average income is below the median income for your state, you should qualify to file a Chapter 7 case. But if your income exceeds the state median income, you may want to talk to a bankruptcy attorney. If you pass the Means Test, you are typically eligible for a bankruptcy discharge under Chapter 7. But even if you fail the first section of the Means Test, you may still qualify to file a Chapter 7 case. The second section of the Chapter 7 Means Test subtracts allowable expenses from your monthly income.
The amount of money remaining after you subtract all allowable expenses is your disposable income. Individuals who don't have disposable income or who have very low disposable income may still qualify to file a Chapter 7 bankruptcy case. If you don't qualify for debt relief under Chapter 7, there are a couple of things to consider. If not, you might consider filing for Chapter Instead of erasing your debts, Chapter 13 sets you up on a repayment plan. A Chapter 13 bankruptcy is a repayment plan.
You repay a portion of your debts through the Chapter 13 plan. Most repayment plans are for 60 months, but some debts may qualify for a month plan. In very few cases does a Chapter 13 debtor repay all their credit card debt. In most cases, the debtor pays a small percentage of their credit card debt to their creditors. Once the debtor completes the Chapter 13 plan, the remaining credit card debt is discharged. Chapter 13 bankruptcy can only help if you complete the plan.
Many people fall behind on their payments and end up back where they started. Bankruptcy attorneys help individuals who need debt relief file a bankruptcy case. In addition to the attorney fee, you must also pay the filing fee to the bankruptcy court and the fees for your required bankruptcy courses.
If you can afford to hire a bankruptcy attorney, it is usually best to do so. Bankruptcy law can be confusing. That said, you can file a bankruptcy case without an attorney. Although it can seem complicated, many people who file for Chapter 7 have pretty straightforward cases. In these easier cases, it usually makes sense to file on your own and just get help with the paperwork. A nonprofit like Upsolve might be all you need.
We can help you do your own paperwork and guide you through the process. The only costs you have to cover are the ones required by the court. Our unique bankruptcy software walks you through the process of filing a Chapter 7 case step-by-step. You can confidently complete your bankruptcy forms , file the forms with the bankruptcy court, and attend your bankruptcy hearing without an attorney. You do not have to come up with a lump sum to pay your past-due amounts, which are spread over the life of the Chapter 13 payment plan; once you successfully complete the plan, dischargeable debts covered by the plan are eliminated.
If you can continue to make mortgage payments, you can keep your home rather than losing it to foreclosure. Chapter 13 also provides a way to get caught up if you are behind in mortgage payments. So, while Chapter 7 and Chapter 13 bankruptcy are different, both can allow you to keep your home. And, because credit card and other debts are eliminated, making mortgage payments after bankruptcy will be easier.
Be aware that exemption laws do not protect all property; a bankruptcy filing does not discharge all types of debts; and there are different classes of creditors that may be able to seize your property. The attorneys at Fesenmyer Cousino Weinzimmer understand each of these distinctions and can provide the best legal advice to protect your assets. Call us for help today.
If debt is something you can no longer handle, take the first step toward relief by contacting the seasoned and compassionate Ohio debt-relief attorneys at Fesenmyer Cousino Weinzimmer. We offer a free initial consultation to evaluate your entire financial situation and determine the best fit for your particular circumstances. We will make sure you are aware of all your options to eliminate credit card and other debt and still keep your home.
We will be there for you and walk you through the process every step of the way. Attorney Andrea Wimmer Twitter LinkedIn Andrea practiced exclusively as a bankruptcy attorney in consumer Chapter 7 and Chapter 13 cases for more than 10 years before joining Upsolve, first as a contributing writer and editor and ultimately joining the team as Managing Editor. Continue reading and learning! Should I File Chapter 7 Bankruptcy?
By the Upsolve Team. Chapter 7 vs. Chapter 13 Bankruptcy By the Upsolve Team. Bankruptcy Learning Center Research and understand your options with our articles and guides. Search Upsolve. Is this a legitimate service? How is Upsolve free?
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