Your Plan to file for Chapter 7 13
How to file for Chapter 13 7 Bankruptcy
The third step in the process of filing a Chapter 7 or 13 Bankruptcy is to plan the bankruptcy to insure that you keep the maximum amount of property and discharge the maximum amount of debts. After gathering your documents, and financial information you will need to consult with an attorney about your goals and how a Chapter 7 or Chapter 13 is able to accomplish your needs.
Many things can happen along the way in a bankruptcy. How you file for a Chapter 7 or Chapter 13 will determine whether or not you successfully eliminate debts and liens on property. Applying the exemptions properly will allow you to file and keep property that you may not be able to keep if you did not file a Chapter 7 or 13 correctly. Your attorney will need to file motions to eliminate a second mortgage in a Chapter 13 or judgment liens in a Chapter 7. He wont know about these liens unless you advise him of them and supply him with valuations. You need to know how to keep property by redeeming it or, reaffirming it. Each choice has advantages and problems and reading our manual will explain how to file for Chapter 13 or Chapter 7 bankruptcy.
A Chapter 7 is designed to be filed for persons with, smaller incomes and little or no equity in their property. There is a means test and people who make less than the average income for their size family automatically qualify under the means test. A person can make more than the average income and still qualify to file for Chapter 7, if after deducting necessary and secured expenses for reasonable items leaves less than a 10% dividend amount for unsecured debts. Persons with over 50% of their debt as business debt are not required to submit a means test and automatically qualify for Chapter 7.
A Chapter 7 allows a person to quickly go through the bankruptcy process. But it does not allow a person to catch up payments on a home mortgage over time like a Chapter 13. A Chapter 13 allows a person the ability to eliminate a second mortgage or the ability to eliminate the interest and penalties of a tax debt. In some cases, a person may have to wait an additional period of time to qualify for discharging some debts such as taxes. All of this takes planning with your attorney.
Attorney Nick C. Thompson Louisville Kentucky How to file for Chapter 7 or Chapter 13 Bankruptcy
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