Debt Overwhelming? Creditors Calling? Is the thought of filing Bankruptcy scary?
There are several kinds of bankruptcies. By sitting down, we can figure out what makes the most sense for you, given your situation (your assets, your debts, your outstanding taxes, student loans, income, etc).
A common myth is that you lose all of your assets when you wipe out your debt in a Chapter 7. Yes, a Chapter 7, does provide a “clean slate” to those who have not had a discharge in the last 8 years; however, you do not necessarily have to surrender assets. We can talk about what assets to protect with a Homestead Deed. You have to qualify for a Chapter 7 and the assets you want to protect cannot have too much value.
A Chapter 13 lasts 3-5 years from the date of filing. It is a repayment plan of all or a portion of your debt. If you have too much equity in your assets; your mortgage or car payments are behind; you make too much money; or you filed a Chapter 7 less than 8 years ago, you may be looking at a Chapter 13 as your best Bankruptcy option. Here are some things will consider when deciding whether it makes more sense to file a Chapter 7 or a Chapter 13:
- Home equity
- Mortgage arrears
- Delinquent car payments
- Delinquent support payments
- Delinquent taxes
- Your income
- When you last filed bankruptcy
Don’t go at it alone: Contact Sossei Law Today
Tammy is well-versed in the effect bankruptcy has on a divorce and the effect a separation and a divorce has on a bankruptcy. She can advise clients on when it is in their best interest to proceed with bankruptcy and their divorce simultaneously, or whether it is in their best interest to do one and wait to take care of the other.
“ By sitting down, we can figure out what makes the most sense for you, given your situation”