There are two types of consumer bankruptcy cases; a Chapter 7 and a Chapter 13. A Chapter 7 is a total liquidation of all of your debts, expect the ones for things you want to keep. Most people need to hang on to at least their home and their car, even in bankruptcy, and so these loans still have to be paid. On the other hand, a Chapter 13 is a reorganization of debts, where you pay back less than the full balance for some things and the full balance for others. What you decide to pay in full is partially up to you, as you do have the ability to pay less for certain types of collateral than others in a Chapter 13. Again, it may hinge on your decision of what to keep and what to give back to the lender and we can help you come up with a plan that meets your needs.
In order to file either type of case though you will have to fill out certain forms and file things with the bankruptcy Court. Here is what you can expect to need, for both types of cases:
• Pay stubs for the past six months.
• Bank statements, including checking and savings accounts, for the past six months.
• Any investment statements, showing what assets you have saved or invested. These types of statements usually come out quarterly, and you should have the last two quarters’ worth of statements.
• Car titles and mortgages/deeds to any real property you own.
• If you own any boats or other recreational vehicles (like an ATV or motorcycle), you will need to provide copies of the title to those as well.
• A list of all creditors, with account numbers and balances due as well as an address for payment.
Once you have gathered all of this data, it is time to sit down with a professional and find out what chapter of bankruptcy you qualify to file. We will look over the documents you provide and perform a mathematical test required by the Court to determine if you are eligible to file a Chapter 7 or a Chapter 13 case. Once a determination as to what chapter of case you can file is made, we will explain the entire process so you can make an informed decision. If you are having difficulty making ends meet, call us today for help.
For more information about how to get out of debt, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.