No one intends to incur debt that they can’t pay back, but sometimes you get overwhelmed by unexpected events. If you lose your job, get divorced, or have a medical emergency, the bills begin piling up. This adds to your existing stress especially if collectors are calling and demanding money you don’t have. 

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TYPES OF BANKRUPTCY

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An attorney will assist you as to which bankruptcy to file. The following are the primary options:

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• Chapter 7 bankruptcy is designed for low-income filers. You have to meet a means test to satisfy the income eligibility guidelines.

• Chapter 13 bankruptcy requires you establish a structured repayment plan and pay back debts over the next three to five years. You need a steady source of income in to qualify for this type of bankruptcy.

• You will probably have to file Chapter 13 bankruptcy to resolve problems with a mortgage and stop the threat of foreclosure.

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Regardless of which type of personal bankruptcy you file, there are several requirements as part of your bankruptcy application:

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• Complete a government-approved credit counseling session and financial management course;

• Fill out a bankruptcy petition and any appropriate schedules;

• Provide information about each of your assets and debts; and

• Attend a meeting of creditors to answer questions about your bankruptcy

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If you file for Chapter 7 bankruptcy, you will also have to prove your income is low enough to meet requirements and request a homestead exemption so that you don’t lose your home. If you file for Chapter 13, you must identify all business assets.

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An attorney can help you with all of these requirements.

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If you are interested in learning more about bankruptcy or need help filing, give us a call today at 800-490-0116 now for a free consultation. Our bankruptcy attorneys have the knowledge and experience for the bankruptcy you need.