Knowing When to Say When: Filing for Bankruptcy

KNOWING WHEN TO SAY WHEN: FILING FOR BANKRUPTCY COMMON REASONS You're out of work and have no FOR FILING unemployment income or savings BANKRUPTCY You owe back taxes Your home is going to be foreclosed on Your wages are being garnished You're being sued for money you owe on delinquent bills Your credit card debt is out of control TYPES OF PERSONAL BANKRUPTCY CHAPTER 7 CHAPTER 13 WHEN IT'S USED Your only property is basic things like clothes and furniture You have equity in a house or other property you wish to keep You're left with little or no money after paying your monthly expenses You are able to pay your living expenses with your income You are unable to pay basic monthly expenses You are unable to make scheduled debt payments ADVANTAGES June July Aug 2014 2015 2016 Most of your unsecured debts can be totally eliminated You get to keep your property while paying your debts Process is usually efficient, with debt being eliminated in a few months You get 3-5 years to pay off your debts on a schedule You can't be contacted by creditors during or after the filing You deal only with the bankruptey trustee- no direct contact with creditors CANDIDATES ELIGIBILITY TESΓ You must qualify under an income eligibility test Individuals with unsecured debts below $360,475 You must complete a session with a credit Secured debts must be counselor before filing less than $1,081,400 PROVIDED BY: Low & Low Bankruptcy Lawyers PRACTICING LAW SINCE 1965. WWW.LOWANDLOWBANKRUPTCY.COM SOURCES: http://www.lowbankruptcy.com/bankruptcy/ http://www.quickanddirtytips.com/money-finance/cred- it/should-you-file-bankruptcy http://www.nolo.com/legal-encyclopedia/bankruptcy-faq-29047-2.html http://www.36ofinancialliteracy.org/Topics/In-Crisis/Bankrupt- cy/What-s-the-difference-between-chapter-7-and-chapter-13-bankruptcy http://www.totalbankruptcy.com/overview/basics/chapter7-chap- ter13-comparison.aspx