Bankruptcy law can be incredibly complicated, which is why having a good bankruptcy lawyer can make all the difference. Partner Melissa Duncan of Duncan Law PLLC is dedicated to helping people who are facing tough times, and going through bankruptcy is no exception. The firm, which has offices in Charlotte and Greensboro, North Carolina, is a family business that is aware that bad things can happen to good people. Here, Melissa talks about why Chapter 7 bankruptcy might be right for you.
Bankruptcy can be a difficult emotional and financial time for everyone involved, and the more you know about what options are available to you, the easier things can be. Two types of bankruptcy are available for individuals wanting to get rid their debts. Chapter 7 bankruptcy is a liquidation bankruptcy where you can start afresh, essentially wiping your slate clean. Chapter 13 is a reorganization bankruptcy, or re-payment plan, where you pay back a portion or all of the debts you owe over time.
A person should select Chapter 7 bankruptcy if he is current on his house and car payments, and if all he has is unsecured debt such as medical bills, credit cards and personal loans that he’d like to wipe out.
Chapter 7 bankruptcy is not a repayment plan, unlike Chapter 13, but there are income limitations for a Chapter 7 bankruptcy. As long as a person is current on his house and car payment and meets the income requirements, he should strongly consider filing a Chapter 7 bankruptcy rather than a Chapter 13 bankruptcy.
Income Requirements
The income requirements are based on the IRS housing standards. They primarily look at where you live and how many people are in your household. Based on that, there are also income limitations. It varies even from county to county within a state.
Chapter 7 means that you will not have to pay back any of your unsecured debt, and you will be in bankruptcy generally for four to six months rather than the three to five years which is required in a Chapter 13 bankruptcy.
Speak to a qualified bankruptcy attorney to determine which type of bankruptcy is best for you. Keep in mind that there are some debts that a Chapter 7 bankruptcy cannot wipe out, such as student loans, child support, alimony and criminal restitution damages. It can all be very confusing, so call us today for a free consultation to help get you back on your feet.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.
