What kind of bankruptcy should I file for credit card debts?
What kind of bankruptcy should I file? Well, it all depends. Most folks file bankruptcy to eliminate credit card debts. If so, Chapter 7 bankruptcy will probably be best. Chapter 7 may eliminate common debts. Like credit cards, unsecured loans, and medical bills. The court must be convinced that your debts were incurred under honest, good faith circumstances. Also, that your really can’t afford to pay anything back. The court will carefully examine your income, assets, and living expenses. To better understand, see The Means Test & Bankruptcy Abuse.
What kind of bankruptcy should I file if I’m in foreclosure?
If you want a short delay, Chapter 7 bankruptcy might still be the answer. The filing of a Chapter 7 bankruptcy creates a temporary restraining order to protect your property. It is called an “automatic stay.” Do you want to gain a few extra months before you leave the property? Then Chapter 7 bankruptcy might be best. However, you want to save your property, consider Chapter 13 bankruptcy. Chapter 13 gives you the opportunity to reorganize your debt. It’s done under bankruptcy court protection. See, How Chapter 13 Works. You must propose a feasible plan. You can have 5 years to cure your mortgage default. You resume normal payments. And you slowly get your house payments current.
Will the bankruptcy court make me sell anything?
Usually not. You are allowed to exempt various kinds of assets. But there are limits. You can get a good idea of the concept here, Exempt Property – Assets Protected. If you have assets that can be taken, consider Chapter 13 bankruptcy. You are not forced to sell anything in Chapter 13 bankruptcy. But you must pay your creditors the value of any non exempt assets. This can by done in payments spread over 5 years.
Your decision on “What kind of bankruptcy should I file?” is complicated.
To find a lawyer, here are practical suggestions. Practical Suggestions for Hiring a Bankruptcy Lawyer. Retaining a lawyer is like getting your car repaired. You wish you didn’t have to. But it’s necessary. An experienced lawyer gives you the best chance of getting your case done successfully. Incidentally, the cost is about the same as a car repair. Can you afford a necessary car repair? If so, you can afford a bankruptcy lawyer.