QUESTION
If we are considering bankruptcy which is the best way to go?
Asked on Jul 18th, 2012 on Bankruptcy - Michigan
More details to this question:
We are considering filing and I would like to know which is the best chapter 7 or chapter 13 ? We would like to keep our home and car. Is there something that we can do ?
25 ANSWERS
Bankruptcy Law Attorney serving Huntington Woods, MI
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Austin Hirschhorn, P.C.
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The decision as to what Chapter of the Bankruptcy you should file to use usually depends on a complete analysis of your assets and liabilities, exemptions, possible non-dischargeable claims and other information that a lawyer would want from you as part of the process of representing you.
Answered on Jul 27th, 2012 at 3:44 PM
There is no "best" or "worst" way to go, in general. You need to talk to a bankruptcy attorney who will go over your assets, income and liabilities to figure out what is best FOR YOU.
Answered on Jul 26th, 2012 at 11:57 AM
Burton J. Green
It is possible to keep your home and car in either chapter. Whether you should file for 7 or 13 depends on a number of different factors which I cannot explore in this answer. Also, the means test may force you into chapter 13. Take advantage of a attorney offering free consultations and discuss your situation with that attorney.
Answered on Jul 25th, 2012 at 10:47 PM
You are able to keep your home and car by reaffirming the debt. If you do not reaffirm the debt, the creditor has the right to foreclose on your home or take your car even if you are making payments. Chapter 7 eliminates bills that you find impossible to pay, such as huge medical or credit card debt. A bankrupty can stay on your credit report for as long as 10 years. Chapter 13 is a repayment plan through which you make installment payments to creditors over a period of from three to five years.
Answered on Jul 25th, 2012 at 10:45 PM
Chapter 7 or 13 choice depends upon the particulars of your case and you have not provided enough detail to offer any advice.
Answered on Jul 25th, 2012 at 1:33 AM
The best way to determine which Chapter of bankruptcy is best for you is for you to call me. Things to be considered included your debts, assets, income and expenses. If you are trying to catch up on back payments on your home over time or trying to strip off a second mortgage that is not secured by equity in the property, Chapter 13 may be best for you if you meet its debt limits requirement. If your income is below the means test and your assets are all exempt, Chapter 7 may be best.
Answered on Jul 24th, 2012 at 1:08 AM
Family Attorney serving Hurst, TX
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Law Office of Eric A. Maskell
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If you are behind on the house and car then Chapter 13 would be your best option. The Chapter 13 allows you to make payments towards the arrearages on both your car and home.
Answered on Jul 24th, 2012 at 12:43 AM
Bankruptcy Attorney serving Grand Rapids, MI
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David Andersen & Associates, PC
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The answer is complicated. Each bankruptcy has its benefits. Contact an attorney and they should be able to advise you.
Answered on Jul 24th, 2012 at 12:40 AM
Bankruptcy Attorney serving Washington, DC
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Law Offices of Diann C. Moseley
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Impossible to answer this question without further information as to which state you live in, the amount of equity in the house and car, amount of your monthly income and much more.
Answered on Jul 24th, 2012 at 12:28 AM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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The first thing I would suggest would be to schedule a free consultation with a bankruptcy attorney who can review your specific finances to provides options for filing. Many times you can file Chapter 7 and retain your home and your car but you need to confirm with an attorney that this will be the right choice for you.
Answered on Jul 23rd, 2012 at 8:10 PM
Consumer Bankruptcy Attorney serving Worcester, MA
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Law Offices of James Wingfield
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There is no easy answer to the question of "which chapter of the bankruptcy code is best". Each chapter has its own distinct purposes and each had different benefits. The best way to answer which chapter is best for you is to consult with an experienced bankruptcy attorney. With that said, I can make some assumptions. Assuming you have a mortgage on your house and you are behind on the mortgage, then Chapter 13 has some benefits, such as the ability to "catch-up" on past due mortgage payments (or car payments) over the course of the Chapter 13 plan. Chapter 13 also allows a debtor to, under very specific circumstances, avoid a junior mortgage all together. With that said, you should understand that assuming you are not behind on the mortgage, and assuming you have a recorded homestead (or have a relatively small amount if equity in the house) it is quite likely that you can keep your residence even in Chapter 7.
Answered on Jul 23rd, 2012 at 7:54 PM
If you are current on your home and car payments, it may be possible to keep both in either a Chapter 7 or Chapter 13. Your income prior to filing, total amount of debt and other assets are more likely to determine which chapter is best. In most cases, if you are eligible based on income, all of your debts are dischargeable and all of your assets are protected by exemptions, then Chapter 7 would be best since it will result in you obtaining a discharge order within a few months of filing. You will be on a quicker path to financial recovery and will eliminate all of your dischargeable debt in a Chapter 7. You also will not pay as much in attorney fees. If your income is too high to be eligible for Chapter 7, you have assets that are subject to forfeiture to the Trustee, or if you have non-dischargeable debt such as unpaid income taxes, then a Chapter 13 may be best. In sum, there are several other factors that must be examined before an attorney could advise you on which Chapter would be best.
Answered on Jul 23rd, 2012 at 7:46 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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You now have to take a "means test" to see if you can qualify for Chapter 7. Do an internet search for "online means test" and fill in the blanks to find out if you can file 7 or must file 13. I have always preferred filing chapter 7 for clients, because it wipes the whold slate clean. In a chapter 13 you have to pay a portion of the debt you owe. There are plenty of attorneys giving free consultations on bankruptcy now. After you have learned about the process, set up some free consultations and go with the one who you feel you can trust the most. Good Luck.
Answered on Jul 23rd, 2012 at 6:13 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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The choice between the chapters is based on your income. Either way you can reaffirm those debts and keep your house and car.
Answered on Jul 23rd, 2012 at 3:02 PM
Chapter 7 wipes out debt and makes creditors angry and gives debtors a sense of relief and breathing space. Chapter 13 makes creditors happy and makes debtors pay their debts on a stringent plan for 5 years, resulting in a lot of stress. Most chapter 13's fail (78%).
Answered on Jul 23rd, 2012 at 2:15 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Jul 23rd, 2012 at 12:11 PM
Bankruptcy: Creditor Attorney serving Grand Island, NE
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Milner Neuhaus & Judds
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There is really not one "best" for everyone. Discuss your situation with an experienced bankruptcy attorney and he/she can guide you.
Answered on Jul 23rd, 2012 at 12:03 PM
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Good question. The answer to whether a Chapter 7 or Chapter 13 will be better for you depends on your particular circumstances. Many Chapter 7 filers keep both their home and theirs cars, but they cannot have much equity in either. In order to file Chapter 7 you also have to pass a means test based on your income. I suggest meeting with a bankruptcy attorney for a personalized consultation. You will need specific legal advice based on your situation.
Answered on Jul 23rd, 2012 at 12:02 PM
Criminal Defense Attorney serving Calabasas, CA
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Law Office of Bernal P. Ojeda
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If you are behind in mortgage payments a 13 is the way to go. A 7 will not work when your in arrears on the mortgage. A 7 is good if you are up to date with mortgage and if married can exempt $100,000 of equity. Car is not an issue if you are current and intend to retain.
Answered on Jul 23rd, 2012 at 11:58 AM
Consumer Bankruptcy Attorney serving Tempe, AZ
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Greeves & Roethler, PLC
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The answer to the questions is impossible to know without going over your individual situation. The preference between a Chapter 13 and Chapter 7 can vary on many factors. The first factor is whether or not you qualify for a Chapter 13. If your income is too high based on your family size, you will not be able to qualify. The next issue is what property do you have, and will you be risking losing it in a Chapter 7, where you may be able to keep it in a Chapter 13. Then you have to determine whether Chapter 13 provides benefits for you that Chapter 7 does not. Chapter 13 is more complex than Chapter 7 but offers many benefits that a skilled attorney can help you with.
Answered on Jul 23rd, 2012 at 11:54 AM
Trusts & Estates Attorney serving Camarillo, CA
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Law Offices of Larry Webb
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It can take a couple of hours to answer this question. Chapter 7 and Chapter 13 each have their strengths and short comings; it all depends upon your situation. One size does not fit all.
Answered on Jul 23rd, 2012 at 11:53 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Unfortunately, there is no "one size fits all." Choosing the right chapter depends upon income, how far in default you are on your obligations, how much equity you have, i.e. how much more than the liens is the item worth and a host of other factors. It is something that a competent bankruptcy attorney ought to be able to tell you after taking into account all the facts.
Answered on Jul 23rd, 2012 at 11:52 AM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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Are you behind on your car and house payments? If you are behind, chapter 13 may be a better option because it will allow you to remain in possession and to make payments on the past due amount for 3-5 years, but you must have a regular income to qualify for this chapter. If you are current on your payments, chapter 7 may be a better option.
Answered on Jul 23rd, 2012 at 11:52 AM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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That depends on a number of factors such as whether you are current on your payments and your income, among other things. I suggest you consult with a bankruptcy attorney to discuss the details of your situation.
Answered on Jul 23rd, 2012 at 11:50 AM
In my view, unless your income is too high (over the CMI test), consider filing Chapter 7 to have your unsecured debts Discharged. File Chapter 13 only if needed to catch up mortgage arrearages or car payments. Shop around, get the lowest priced and experienced bankruptcy attorney you can find, and go with the information provided to you.
Answered on Jul 23rd, 2012 at 11:50 AM