QUESTION
If I have to file either Chapter 7 or Chapter 13 for past debts, which would be in my best interest?
Asked on Aug 01st, 2013 on Bankruptcy - California
More details to this question:
My daughter is about to start college and I will need to buy a vehicle for her. Would this prevent my chances?
10 ANSWERS
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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If you get a chapter 7 discharge, you will probably be al to get credit to buy a car. You will not owe ay debt at that time.
Answered on Aug 13th, 2013 at 11:54 PM
If you file Chapter 13, you will be unable to borrow money for between 3-5 years without court approval. So you may want to buy the vehicle before you file. But having another vehicle payment may make you ineligible to file Chapter 13 if it leaves you without enough money to fund payment of your goals in a Chapter 13. A Chapter 7 should be completed within 3-4 months, so you may be able to buy a vehicle either before or after your Chapter 7. But do you need to have this vehicle as a deduction to qualify to file Chapter 7? Alas, without reviewing the details of your finances, and not having a well polished crystal ball, I cannot say for sure which is why you need to consult with an attorney to review your finances.
Answered on Aug 02nd, 2013 at 10:43 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Ask a car lender?
Answered on Aug 01st, 2013 at 7:24 PM
Richard hirsh
You do not provide enough information to give an answer.
Answered on Aug 01st, 2013 at 7:12 PM
General Practice Attorney serving Coeur d'Alene, ID
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Michael B. McFarland, PA
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It may depend upon which chapter(s) you may be eligible for, as well as the nature and amount of your debt and your income. You should arrange a consultation with an experienced bankruptcy attorney which is usually available for a minimal (or no) fee for the first meeting.
Answered on Aug 01st, 2013 at 6:55 PM
Sanford M. Martin
As stated in bankruptcy Form 201A which must be read by each bankruptcy filer, whether you file Chap 7 or 13 depends on your income, financial situation, and objectives. Chap 7 discharges most consumer debts but has income requirements. Chap 13 is for those debtors who want and can pay off all or part of their debts but need at lease 3 yrs to do so. So the best option for you depends on your debts, income, and financial objectives.
Answered on Aug 01st, 2013 at 6:54 PM
General Law Attorney serving Cherry Hill, NJ
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Mark S. Cherry, Attorney at Law, PC
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Which chapter to file is a function of income, debts, assets and other factors such as arrearages on secured property. Purchasing a vehicle is probably a problem regardless of which chapter.
Answered on Aug 01st, 2013 at 6:54 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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From the limited information, it would be hard to advise. Speak with a bankruptcy professional. Many offer free consults.
Answered on Aug 01st, 2013 at 6:32 PM
Trusts & Estates Attorney serving Camarillo, CA
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Law Offices of Larry Webb
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There is not better or worse decision. The decision to file ch7 ch13 depends on the facts of the case. Consult with an attorney, most of us do not charge for the first consult. As to the car, if your credit situation is causing you to consider bankruptcy, financing a car may already be a challenge. Car dealers will work with recent bankruptcy filings. There is a difference in ch7 and ch13, consult with an attorney before you buy.
Answered on Aug 01st, 2013 at 6:31 PM
Litigation Attorney serving Stockton, CA
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Patrick Jay Edaburn
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It is going to be difficult to say for sure without knowing the specifics of your situation. Chapter 7 is quicker and by far more common but without more details it is tough to say which is your best option.
Answered on Aug 01st, 2013 at 6:21 PM