Here is an update on bankruptcy FAQ’s for 2016. We’re giving you answers for some of the most common bankruptcy questions that people are asking on Google.
Bankruptcy FAQ: How much debt do you have to be in to file bankruptcy?
There is no minimum amount of debt required to file bankruptcy. If you owe more than you can handle, you probably owe enough to file bankruptcy. Whether or not you actually should depends on many factors. A bankruptcy expert can explain all of it to you. Considerations include the value of your assets, and your income. See how a typical bankruptcy works.
Bankruptcy FAQ: How much does it cost to file chapter 13?
The bankruptcy court filing fee is $310. However, the lawyer fees are very expensive. That’s because these cases take so much legal work to be correctly handled. But you are crazy to file Chapter 13 bankruptcy without a lawyer. Chapter 13 is expensive. See what your chances for success will be without a bankruptcy lawyer. It is virtually impossible to gain approval of your Chapter 13 plan without a really good lawyer. Lawyer fees will vary depending on where you are located. In the Los Angeles bankruptcy court, the normal lawyer fee will range from $5000 to $6000.
Bankruptcy FAQ: If I file bankruptcy…
- Can I buy a car? After bankruptcy, a car loan is usually the easiest kind of new credit you can get. So long as you have a steady job, you should have no problem. People who have just finished a bankruptcy case are good sales prospects for car dealers. In fact, many car dealers will send you a letter to congratulate you. Before you buy a new car, arm yourself with knowledge. Learn how to be a smart car buyer. See the tricks and games that car dealers use to take advantage of you.
- What happens to my car loan? You should be able to keep your car in most cases. You must keep current on your payments and insurance. Your lender may require you to reaffirm your car loan. Reaffirmation is a legal procedure that takes takes your car loan out of the bankruptcy. See how reaffirmation plays a role in keeping your car and rebuilding credit.
- What happens to my IRA? You should have no problem keeping your IRA. The law protects your Individual Retirement Account up to a value of about $1,000,000. That is probably enough for you. The assets you get to keep when you file bankruptcy are called “exemptions.” That’s because they are exempt from liquidation by the bankruptcy trustee. See how exemptions work, and what they are.
- What happens to my mortgage? Assuming all of the equity in your home is exempt, you keep you home and your mortgage. Provided however, that your loan stays current, along with your insurance and property taxes. However, sometimes you can remove a junior mortgage from your property. This is often referred to as “lien stripping.” See how to strip off a mortgage from your property.