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Check whether you qualify for Bankruptcy Chapter 7 or 13

Posted on: 18th Nov, 2005 01:16 am
Have you tried out various ways to get out of debts? Or do you think that bankruptcy is the only solution to a debt free life?

You can file either of bankruptcy chapter 7 or Chapter 13 but this depends on your financial ability to pay off debts. This is determined by the Means Test introduced by the New bankruptcy Law.

bankruptcy chapter 13 or chapter 7

To know more about bankruptcy please visit click here.

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i have about $85,000 in unsecured credit cards debts under my name only,in which mostly in collections. i am unemployed, but own a house with equity of over $200,000. my husband is paying for all our expenses including home mortgage. he cannot afford to help me. i wanted to file for a chapter 13 or 7 bankruptcy. do you think i am qualified for either one? i have no way of paying my credit cards at the moment until i get a job. what will happen if i can't pay? will i be sued even though these are unsecured debts, and how long will they send me to court? i haven't been paying for over a year now. we have equity in our house, but cannot afford to borrow. i really appreciate your input. thanks
Posted on: 15th Feb, 2009 07:14 pm
hi depressed,

you will have to go for a means test in order to check if you can qualify for chapter 13 or chapter 7 bankruptcy.

the credit card company can always come after you in order to recover their debts. you can try out the options of debt consolidation or debt settlement in order to clear off your credit card debts. in a debt settlement, your outstanding balance can be reduced by 40%-60% depending upon your situation. in a debt consolidation, the interest rates will be reduced.

you can contact any debt consolidation company and check out their plans. if you can afford any of these plans, you may go for it.


Posted on: 16th Feb, 2009 01:34 am
Good afternoon. I'm trying to figure out if I should file for bankruptcy or if I have other options. I'm 24 and have been caught in the payday loan trap. I have three payday loans totalling 3K, but the interest is $500/paycheck. I've fallen way behind on my credit cards (6 total...about 5k in debt). I make about 30K/year, but am barely able to cover my insurance, phone, utilities, and rent each month at this point. I've slowly fallen behind on my car payment as well...I'm about 2 months behind right now. I don't really have any savings, and the only property I own are the bedroom furniture (dressor, nightstand, hope chest) that my parents bought me when I was a kid (seven or eight), and a laptop that I use to work from home and browse the internet on accasion. Any advice? I don't want to default on my obligations, but I can't go on living like this either.
Posted on: 18th Apr, 2009 10:15 am
welcome ceonajaj,

rather than filing bankruptcy, i would suggest you to go for debt consolidation or debt settlement. if you go for debt settlement, your payments will be lowered by 40%-60% depending upon your financial situation. if you go for debt consolidation, the interest rates for paying off the credit cards will be reduced.
Posted on: 27th Apr, 2009 01:31 am
Is it neccesary to report property out side the country while filing a chapter 7?
Posted on: 01st Jun, 2009 10:05 pm
hi ari,

as far as i know, you should report all the properties that you have while filing chapter 7 bankruptcy. i would suggest you to contact your bankruptcy lawyer and discuss your options with him.
Posted on: 02nd Jun, 2009 11:43 pm
i have a question concerning chapter 13. my wife and i are planning a chapter 13. our unsecured debt is about 35k. we have a first mortgage of 160k and a second mortgage of 70k. yet home values have plunged horribly. our home is now only worth 185k. both these mortgages are up to date, and have never been late. the problem is the unsecured debt. we passed the means test and have disposable income of $100. we already figured in the court cost each month. this would mean $6000 to go to unsecured creditors. our question, the bankruptcy law says that chapter 13 unsecured creditors are to get what they would receive if we filed chapter 7. does the equity imbalance have a bearing on this at all? we are under the assumption that if the home were to be liquidated, any equity that's left would go to the second mortgage lienholder. there would be nothing left in this scenario to be paid to unsecured creditors. we are making our best effort and really have no other assets of value, except household items, which are exempt in pennsylvania. we make more than the state median and we will consult an attorney later. we just wanted to get some reassurance that we're on the right track with our thinking. can anybody help?
Posted on: 07th Jun, 2009 08:41 pm
hi mc

if you file chapter 13 bankruptcy, you would get a discharge when you pay off the mortgage dues according to the new plan given to you by your lender. as far as the unsecured debts are concerned, they will get discharged. as you've mentioned that you make more money than the state median income, you won't qualify for chapter 7 bankruptcy filing.

Posted on: 08th Jun, 2009 01:56 am
just got a job been unemployed for about 4 months. everything is behind some of my creditors are working with me, but my mortgage company doesn't get it i borrowed money from family & friends to pay everytime i pay want, need more money evn when i explain that i have given them all i have, i have many other debts including property taxes. i took the first job i could, even though it is low pay . at this point i feel that filing bankruptcy is my onlt alternative i am a single parent, are there any other options for me ?
Posted on: 21st Jul, 2009 04:31 pm

If you want to get rid of the mortgage, you can apply for a deed in lieu foreclosure and check out if the lender approves it. This will help you in selling off the property and you won't be liable for the deficient amount. However, this will definitely effect your credit score.
Posted on: 24th Jul, 2009 12:28 am
I've filled out an online means test and I have a question. Will my payments on school loans and 401k loans qualify as an expense that will be deducted from my bottom line disposable income? Does a trustee allow room for those payments?
Posted on: 25th Aug, 2009 11:53 am
Hi Lori,

Your query has been answered in the given page:

Take a look at it. I hope it'll help you.
Posted on: 25th Aug, 2009 11:27 pm
My inlaws currently owe 12,000$ in back city property taxes, they have student loans that are being paid for by garnished income tax returns, and now an 8000$ (30% interest annually) lien on their property from medical bills which is being garnished from their wages. Their only asset is the property with a house on it, valued at 200,000 combined.

Is bankruptcy an option here? Is there anyway they could file and keep the house and property?

I'm not versed in liens, if the lien is payed off in one payment, then the lien is lifted?
Posted on: 15th Sep, 2009 09:42 pm
hi i am in chaptr 13 bankruptcy and still struggling to make the payments; can i get my case dismissed and just file chapter 7?
Posted on: 16th Sep, 2009 05:26 pm

to c and m,

as far as i know, back taxes and student loans do not get discharged through bankruptcy. your in-laws will have to pay it off. as far as other liens are concerned, you can make one single payment and pay them off. once you do so, make sure you get a lien release certificate from the creditor.

to help,

you do not need to dismiss your chapter 13 bankruptcy to chapter 7. you can simply convert your bankruptcy into chapter 7. you can contact your bankruptcy attorney and take the required steps.
Posted on: 17th Sep, 2009 12:30 am
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