When you are in over your head financially, and considering bankruptcy as an option, it is important to know what to expect and what type of case you will be allowed to file. For consumers, the two choices are a Chapter 7 or a Chapter 13 case. The Chapter 7 case is more desirable, because it is shorter and will wipe out all of your unsecured debt. For most debtors, financial struggles begin when there is an overwhelming amount of high interest rate unsecured debt to service every month. Eliminating this debt from your monthly expenses can mean the difference between living paycheck to paycheck, and having a little extra to set aside for an emergency.
The Bankruptcy Code contains the rules for both types of chapters, as well as the rules for bankruptcies for businesses and governments. To figure out what type of bankruptcy works best for you, you can review some or all of the following factors:
- Your monthly income versus your monthly expenses, and whether any money is left over at the end of the month after all your bills are paid.
- Your long term financial goals.
- The stability of your job, which impacts your ability to make payments on your debts each month.
- The amount of secured debt you have.
Once you have gathered the necessary information; such as tax returns, pay stubs, copies of your monthly bills, information about your health and auto insurance premiums, how much you spend on gas for your daily commute each month, a typical grocery bill, and any other monthly expenses you pay regularly, you will be ready to review your financial picture with a skilled bankruptcy and debt management attorney. The attorney will need this information because a confusing mathematical calculation has to be performed to determine what you qualify to file. If the numbers show you can pay some of your unsecured debt, you will have to file a Chapter 13. Let us help you figure out what is best for you, and find ways to get you back on your feet financially for today and tomorrow.
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.