What Are The Differences Between Chapter 7 And Chapter 13 Bankruptcy?
The difference between a Chapter 7 and a Chapter 13 bankruptcy has to do with income level. At our firm, we only handle Chapter 7 bankruptcies. The benefit of Chapter 7 bankruptcy is that it wipes out the debt, whereas a Chapter 13 bankruptcy puts you under a repayment program for up to five years. After the 341 meeting and order of discharge in a Chapter 7 bankruptcy, you are done with the process.
What Requirements Must Be Met For Filing A Chapter 7 And A Chapter 13 Bankruptcy?
One requirement for filing a Chapter 7 or Chapter 13 bankruptcy is to provide proof of your income for the past six months. If you have over a certain amount of income or taxes and are filing for a Chapter 13 bankruptcy, then you will have to abide by a repayment program. If you are filing a Chapter 7 bankruptcy, then all of your debts will be discharged. However, if you want to keep an asset, such as a house or a car, then you will have to file a Chapter 13 bankruptcy.
How Do I Know Which Type Of Bankruptcy Is Right For Me?
The best way to figure out which type of bankruptcy is appropriate for you is to consult with an attorney and have your finances ready for evaluation. You should have your paycheck stubs for the past six months, your tax returns for the past three years, copies of your bank account statements for the past two years, and a list of all your debts prepared for your attorney.
Why Do I Need An Attorney To Help Me File Bankruptcy? Can I Just Do It Myself?
You should seek the assistance of an attorney when filing for bankruptcy because the voluntary petitions can be relatively complicated. When you submit a bankruptcy filing, you do so under penalty of perjury, so it’s important that you do not leave anything out. If you were to omit information due to a simple misunderstanding, you could face prosecution for fraud or perjury.
For more information on Bankruptcy Cases In The State Of Texas, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (817) 532-5666 today.