Before some Attorney accuses me of the unlawful practice of law, let me say this...I am not an attorney and this information is available to anyone who is willing to invest their time to find it. Nothing in this brief outline should be considered legal advice or considered a suggestion on how to resolve your financial situation. If you are considering bankruptcy, by all means see a qualified and experienced attorney.
A Chapter 13 filing is going to let you pay back some or all of your debt over time. But know this going in, part of your paycheck is going to go to a court appointed Trustee who will take care of paying some of your creditors. This is called pre-petition (before filing) debt. Another part of your income will be used to pay your post petition debt (after filing). These "post petition" payments will usually be your responsibility to pay directly to some of your creditors and usually includes your house payment, car installment or other secured debt. Secured debt is a loan or financial agreement where there is something of collateral to secure the debt.
Successfully completing a Chapter 13 can be tough for several reasons. Here is where a a qualified and experienced bankruptcy attorney will come in handy.
A Chapter 7 filing is usually referred to as a liquidation filing. Years ago, you could file a Chapter 7 and discharge some of your debt entirely without much of a problem. But now you need to qualify for a Chapter 7 fling. This means that if you have too much disposable income or do not meet certain financial criteria, , you may need to filing a Chapter 13. If you are able to fle a Ch 7, you will receive a discharge in a few months which may relieve you of some of your debt...maybe.
The rule of equity is big in bankruptcy court. This means if you are trying to avoid paying your debt, some creditors may seek to avoid their debt from being discharged.
Let me guess....there is some head scratching, eyes a little strained and some are reaching for the hard liquor. Do yourself a favor and call a lawyer. There are some good ones and some so-so ones.
President Lincoln once said..."a lawyers advice is his/her stock in trade". Don't be afraid to ask a lot of questions and how best you will benefit from filing bankruptcy or perhaps not filing one at all.
Visit the internet for more information on bankruptcy. The more you know about the types you can file and how they may impact you, the better. It will make meeting with an Attorney a little less stressful.
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