Bankruptcy Essential Info
Chapter 7 Bankruptcy forgives some or all of your
debts so you can start fresh. Debts that can be forgiven
include credit cards, medical bills, judgments, even
some home mortgages if they exceed the value of your
home! You have to qualify to have your debts forgiven
and start fresh. Basically, if you are unable to pay
your bills in a timely manner and have not filed a
Chapter 7 bankruptcy in the prior eight years, you
may qualify to have your debts forgiven and start fresh
provided you earn less than the median income* in your
area.
*Median Incomes in the Southern
District of California
Family Size
1
2
3
4
5
6
7
|
Monthly Income
$4,099
$5,425
$5,890
$6,664
$7,239
$7,814
$8,389
|
Chapter 13 Bankruptcy is a form of interest-free debt
consolidation where you pay the bankruptcy trustee
every month for three to five years and he pays your
creditors some percentage of what you owe them. At
the end of the term of the rest of your remaining debts
are forgiven It is appropriate for debtors who have
non- exempt assets they wish to keep, or exempt assets
for which the payments are in arrears, or who earn
at least the median income. Another benefit of
Chapter 13 is the opportunity to pay considerably less
than what you currently owe for a vehicle you have
owned for at least 2-1/2 years - you only have to pay
the current fair market value of the vehicle,. The
rest of what you owe is unsecured debt ... and like
your credit cards, forgiven. |
