Keep Paying Home Mortgage or Car Loan While Eliminating Other Debts
One of the most common ways to get out of financial difficulties is by filing for Chapter 7 bankruptcy. Pennsylvania residents who qualify for Chapter 7 enjoy a complete elimination of eligible debt. Eligible debt includes unsecured debt, such as credit card and medical bills. With a Chapter 7 bankruptcy, you may be able to reaffirm secured debts like car loans and home mortgages; to keep those possessions and catch up on missed payments.
If you are fighting growing debt and cannot see a way to reduce it in the next couple of years,Chapter 7 bankruptcymay be an excellent option to receive a fresh financial start. Bankruptcy lawyer Jose C. Campos, Esq. focuses his legal practice on consumer debt relief.
Contact our office to schedule an appointment today.
Who Qualifies for Chapter 7 Bankruptcy?
One of the major misconceptions about consumer bankruptcy is that almost no one can qualify for Chapter 7 bankruptcy. This is not true. However, the petitioner does have to pass a so-called “means test” in order to qualify. One version of the Chapter 7 bankruptcy means test compares your income to the median income for your state and household size. If your income is lower than the state median, then you qualify for Chapter 7 bankruptcy.
If your family income is higher than the median income, however, you may still qualify for Chapter 7 bankruptcy. An experienced Chapter 7 bankruptcy attorney can analyze your finances via a more detailed means test that compares your income to your monthly expenses.
Timing Is Important
Timing is also important when filing Chapter 7 bankruptcy. An example is that you do not currently qualify, but you know that you will lose your job next month.
Chapter 7 Bankruptcy Compared to Chapter 13 Bankruptcy
Even if we perform every possible financial analysis and determine that you do not qualify for Chapter 7 bankruptcy, we can advise you about Chapter 13 bankruptcy. Chapter 13 bankruptcy is sometimes called debt reorganization bankruptcy. With Chapter 13 bankruptcy, you enter into a reasonable repayment plan overseen by the bankruptcy court. If you make all scheduled payments over the three to five-year repayment period, remaining unsecured debt may be eliminated.
Get Answers to Your Questions about Chapter 7 Bankruptcy
Most people considering bankruptcy have many questions:
- What happens to my bankruptcy if I get a divorce?
- Will I lose my car?
- Will I lose my house if I file Chapter 7 bankruptcy?
Pennsylvania residents who come to The Law Offices of Jose C. Campos, Esq. are given advice on the many ways to restructure their debt, even when going through a divorce. Get answers to these and other questions–make an appointment with a knowledgeable bankruptcy attorney at The Law Offices of Jose C. Campos, Esq. today.