Which Type of Bankruptcy Should I File?
Basically, if you have few assets, do not have a regular income or you do not have enough income to meet your basic needs and have something left over to help pay down your debt, then Chapter 7 bankruptcy might make the most sense for you. It will allow you to start fresh as quickly as possible, with the possibility of receiving a discharge of your debt in as little as a few months.
If, however, you have a regular income and can meet you basic living expenses with a little bit left over every month, your goal may be to reorganize your debts to a manageable level in order to pay your way out of debt. In this case, Chapter 13 bankruptcy would probably be the right choice.
In a Chapter 7 bankruptcy, all of your non-exempt property would be sold (“liquidated”), and the proceeds of the sale would be used to pay off a portion of your debts. If you have few assets, this type of bankruptcy may be the best option. For more information on which assets are considered exempt from sale in a bankruptcy proceeding, see the page on Chapter 7 bankruptcy.
If, on the other hand, you have a lot of non-exempt assets, such as a house, or you have regular income, you may have more to lose by having your assets liquidated to satisfy your debts, or a portion of your debts, than you would by creating a payment plan to pay off your debts over several years. In that case, you should probably consider filing for bankruptcy under Chapter 13.
Most people who consider bankruptcy have been in financial difficulty for quite a while. If you are unable to pay your debts, your creditors are hounding you or you stand the possibility of losing your home, you should consider the possibility of filing bankruptcy. Timing can be very critical with regard to bankruptcy filings. The filing of bankruptcy temporarily stops all creditors’ action against you, including lawsuits already filed, collection of judgments already entered, not to mention phone calls, income execution (wage garnishments) and threatening letters.
Your future financial prospects are important in timing the filing of the bankruptcy. Economic and financial difficulties will strain even the most harmonious family relationship. Divorce or separation may also cause financial as well as emotional problems for at least one party. Serious illness can be financially devastating. Money problems can also lead to health problems.
Contact Us Today!
In the event you have financial difficulties please contact the Law Offices of Schlissel DeCorpo. We will answer your questions, determine if bankruptcy is appropriate in your situation we will review the legal expenses, time-frame and all other issues involved with filing a bankruptcy. We will also explain all the details involved in the bankruptcy process.
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