Bankruptcy Discharge: Different Results for Different Debts In Chapter 7 bankruptcy, you can usually wipe out almost all qualifying debts: those that aren't "secured" meaning you haven't promised to give back property like a house or car if you don't make the payments; more on that below or "priority" like unpaid child or spousal support.
Qualifying Debts More than nine out of ten readers had balances on their credit cards when they filed for bankruptcy—the most common kind of debt they reported by far. In general, readers also had high discharge rates for other types of qualifying debts, including: lawsuit judgments after creditors sued and received a judgment against you in court business debts for which you're personally liable, and utility and phone bills. Back Taxes It's difficult—but not impossible—to discharge some older debts for unpaid income taxes see our article on eliminating tax debts in bankruptcy.
Student Loans Usually, you can't wipe out student loan debt in bankruptcy. In Chapter 7, you can keep a house or car if: you're not behind with those loan payments when you file or you've had a loan modification to get current , and all of your equity in the property is protected or "exempt" under the laws in your state.
The Bottom Line In light of these results—high rates of discharge in a matter of months for the most common debts—it's not surprising that our readers were largely happy with their Chapter 7 experience.
Talk to a Bankruptcy Lawyer Need professional help? Start here. Practice Area Please select Zip Code. How it Works Briefly tell us about your case Provide your contact information Choose attorneys to contact you. Take our bankruptcy quiz to identify potential issues and learn how to best proceed with your bankruptcy case. Related Products More. Chapter 13 Bankruptcy. How to File for Chapter 7 Bankruptcy. The New Bankruptcy. View More. Get Professional Help. Find out how much your bankruptcy district charges as a down payment with the application.
The down payment counts towards the total fee. Each bankruptcy district sets its own minimum. Being eligible to apply for a fee waiver doesn't mean that you will automatically get it. The bankruptcy court will review your fee waiver application and decide if it's appropriate in your case. The judge will look at your income, expenses, and assets when making this decision. If your fee waiver is denied , the bankruptcy court will typically give you the chance to pay the filing fee in installments based on a set payment plan.
Fee waivers are not available in Chapter 13 cases. Chapter 13 cases require that the filer have disposable income to make monthly plan payments to the trustee. Not being able to pay the filing fee would make it hard for the court to believe that a Chapter 13 repayment plan can be proposed in good faith.
You can ask the court to pay the filing fee in installments. This can be helpful if you have to file quickly to stop a foreclosure , but don't have the full amount available. The courses are the same for both Chapter 7 and Chapter 13 cases.
The purpose of mandatory credit counseling is to help you explore if bankruptcy is the right debt relief solution for you. The second course, debtor education, is a mandatory two-hour course in personal financial management designed to teach strategies on handling finances after bankruptcy. Both courses can be completed online and generally are inexpensive and not too time-consuming. Trustee's Office. The courses must be taken through approved providers and the cost will depend on which provider is chosen.
The U. Trustee Program maintains a database of approved credit counseling agencies by state and a list of approved providers of debtor education. Approved credit counseling agencies are required to operate as nonprofit entities, so the cost tends to be slightly lower for the first course than the second course. The filing fee and the course fees are the same for pro se filers, folks going through legal aid, and filers who have a bankruptcy lawyer help them.
Upsolve Community Member What is the total cost for your services For a general overview of the types of cost s associated with a bankruptcy case, check How much will it cost to file Depending on your case, the total cost of filing bankruptcy might include attorney fees. Know that you always have the right to for bankruptcy protection pro se - on your own without a bankruptcy attorney. And our free online tool helps qualifying low-income filers through the bankruptcy process.
However, no matter your situation, it isn't a bad idea to meet with a bankruptcy lawyer for a free consultation and learn what type of legal help you may be able to afford. Most attorneys handle Chapter 7 bankruptcy cases on a flat fee. This means that they charge a set amount up-front for the legal services involved in preparing and filing a Chapter 7 case.
The benefit to the flat fee option is that barring unforeseen situations you'll know from the start exactly how much your bankruptcy attorney fees will cost. The alternative to charging a flat fee is charging an hourly fee. The hourly rate should also be included in a written agreement between the attorney and client. It's possible, but rare, for a bankruptcy law firm to bill hourly attorney fees for filing a Chapter 7 consumer bankruptcy.
Flat fees for filing bankruptcy can vary greatly depending on the complexity of your case. Before I begin, many of these fees are included in the Chapter 13 plan, but you should be aware of them as you do have to pay them. Many attorneys require a small upfront payment, and then the rest is included in the Chapter 13 plan. The fee is often similar across a bankruptcy district as these are known as the no look fee, which is the reasonable cost for a Chapter 13 bankruptcy fee.
One of the biggest fees that many people are not aware of, but you should be is the Chapter 13 trustee fee. These fees can result in thousands of dollars paid through the plan. The Chapter 13 trustee helps administer the bankruptcy case. You can find the Chapter 13 administrative fees, here for cases filed after May 15, A major reason to be aware of the differences between Chapter 7 and Chapter 13 bankruptcy is to have an apt understanding of Chapter 13 bankruptcy to prevent getting pushed to file under Chapter 13 bankruptcy.
Why would a bankruptcy attorney suggest that you file a Chapter 13 bankruptcy when you qualify for a Chapter 7 bankruptcy? Could it be due to Chapter 13 cost? Who knows? Having said that, you should take a free online test with a Chapter 13 vs. Chapter 7 bankruptcy calculator; this helps to holistically make a comparison of your bankruptcy and its alternative options to make an apt decision. So you may just carry out quick research to know your best option before experiencing a Chapter 13 horror story.
0コメント