Blog

What is the difference between a Chapter 7 and Chapter 13 Bankruptcy?

Transcripts A Chapter 7 bankruptcy is a liquidation bankruptcy. A Trustee can liquidate or sell your non-exempted assets. A Chapter 13 is a reorganization, it can help save your home from foreclosure. The payment to the court is based on your income, your expenses and your non-exempted assets.

Can chapter 13 lower my car payments?

Transcripts A Chapter 13 can be used to lower your car payment. The principal amount of the loan can be reduced to the current market value of the car and interest rates, which sometimes are as high as eighteen to twenty percent for people with bad credit, can be reduced to five or six percent.

What are Bankruptcy Exemptions?

Transcripts   Exemptions are assets that are protected in a Chapter 7 bankruptcy. Exempt assets can’t be sold by the trustee for the benefit of your creditors.

Will I lose my house if I file a Chapter 7 in Florida?

 Transcript   Florida has a homestead exemption which means 100% of the equity in your house is protected from your creditors or a federal bankruptcy trustee. The rule does not apply to secured creditors such as mortgage or an association.

What is the Mean Test?

Transcript   The Means Test is used to see if you qualify for a Chapter 7 bankruptcy. It takes into account your income, your expenses, and your household size to calculate your disposable income. If you have too much disposable income, you won’t qualify for a Chapter 7 and you’ll have to file a Chapter … Continue reading “What is the Mean Test?”

Can my chapter 7 be denied?

 Transcript   It is possible to have your bankruptcy denied, however, it’s easy to avoid. If you are truthful and accurate when you answer the questions on the forms and answer the questions of the bankruptcy trustee, you should have no issues.