QUESTION
Which is better, chapter 7 or 13 if we have garnishment, 2 car loans, student loan, medical bills, a storage bill and our income doesn't meet our bil
Asked on Jan 08th, 2014 on Bankruptcy - California
More details to this question:
We are currently living with family. We need relief and a light at the end of the tunnel to get back on our feet. Does our situation exclude us from one of the chapters?
12 ANSWERS
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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Either Chapter 7 or Chapter 13 could help you. You need to call an attorney, and review your whole financial situation to see which will work best for you and your family. There are rules and consequences to either. After a review of your situation, an experienced attorney who does Chapter 7 and Chapter 13 cases can help you decide what is the best option.
Answered on Jan 13th, 2014 at 10:33 PM
There are many factors that need to be taken into account when determining what kind of bankruptcy is best for you.
Answered on Jan 10th, 2014 at 10:34 PM
The Oregon Bankruptcy Court has links to the U.S. Trustee's website where you can find the criteria they use for the so-called "means test" which determines whether you make too much money to qualify for a Chapter 7. If your income is above median for your household size, you might still be able to qualify for Chapter 7 if your "disposable monthly income" falls below a certain threshold. If your household income is below median, however, there are other factors such as assets which may cause you to prefer a Chapter 13 over 7. Most people choose Chapter 7 if they can because it is far cheaper and quicker than Chapter 13. If you don't own a house, a Chapter 7 is probably preferable for you.
Answered on Jan 10th, 2014 at 7:39 PM
You can't qualify to file Chapter 13 unless you can show that after paying your necessary living expenses, you have money available to fund payments to a bankruptcy trustee to meet your plan.
Answered on Jan 10th, 2014 at 7:38 PM
NA hordjc@yahoo.com
Whether to file Chapter 7 or Chapter 13 depends upon a lot of factors, such as which property you wish to keep, or give up; amount of income for means test calculations; nature of the garnishment debt, etc. This can only be determined by sitting down with an attorney and making a thorough analysis of your situation. A determination will then be made as to whether a Chapter 7 or Chapter 13?will in your best interest. Most consultations are free, and I suggest you obtain advice as soon as possible.
Answered on Jan 10th, 2014 at 7:37 PM
Bankruptcy Attorney serving Santa Rosa, CA
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Law Offices of Craig Burnett
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There is no way to answer this question without knowing your individual circumstances. The information provided in this question is insufficient to determine whether you would even be eligible for Chapter 7 under the Means Test. I generally advise my clients to file Chapter 7 if they are eligible and the circumstances warrant, since Chapter 13 requires a payment plan for three to five years.
Answered on Jan 10th, 2014 at 7:37 PM
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It all depends on what your disposable income is after reviewing your net income and allowed expenses each month.
Answered on Jan 10th, 2014 at 7:35 PM
Bankruptcy Attorney serving Overland Park, KS
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Wellman Law LLC
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You would have to meet with an attorney and go through a full consultation in order to get accurate advice on which Chapter is best for you. It does sound as though most likely a case will benefit you. Often a Chapter 13 can be filed for very little up front, so that's often good for someone being garnished. Also if you have been paying on the vehicles for a while or had them long enough to do a "cram-down" to the value that may help ease your monthly budget as the Chapter 13 plan payment would likely be much less than your regular monthly payments on the vehicles. You should definitely meet with an attorney. You may be able to get a case filed in as soon as 5-10 days, stopping the garnishment and handling everything through a plan.
Answered on Jan 10th, 2014 at 7:35 PM
Deborah F. Bowinski
You really should sit down with a lawyer and review your situation in greater detail. Eligibility for chapter 7 is based on income and household size. If you are eligible for chapter 7, and if you do not own any assets that would be in danger, and if there are no other considerations that would be problematic, then a chapter 7 would be faster and easier. BUT there is not enough information here to determine which is your best option.
Answered on Jan 10th, 2014 at 9:57 AM
Student loans are not dischargeable in bankruptcy. Chapter 13 is a reorganization that allows you to repay debts over 3-5 years. Chapter 7 discharges all debts. Your cars can/will be repossessed if you seek discharge and stop paying the loan, but you can reaffirm the car loans. Obtain a free consultation with a bankruptcy attorney to evaluate your financial position and recommend whether Chapt 7 or 13 is best.
Answered on Jan 10th, 2014 at 9:45 AM
Chapter 7 Bankruptcy Attorney serving Woodland Hills, CA
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The Law Offices of Marc Weinberg
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If you have no money left at the end of the month after paying all of your living expenses, then Chapter 13 is not for you.
Answered on Jan 10th, 2014 at 9:45 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Still need more information. Are you behind on the bills? Do you need to repay the car loans (in arrears). Student loans are not dischargeable, and if you are behind on the storage bills, then they could file suit to claim the property in the storage unit, and sell it. Recommend that you get with a Bankruptcy attorney in your location/jurisdiction and discuss. It will also depend on what your income is.
Answered on Jan 10th, 2014 at 9:44 AM