During an average year, U.S. Bankruptcy Court statistics indicate that over 1.5 million people in the United States file for bankruptcy. If you’re considering filing a Chapter 7, the potential for having a more successful outcome is 95% when working with a bankruptcy lawyer.
One of the benefits of working with an attorney is that they will be able to guide you through the process. Another benefit is that they have experience within this area of the law and will be able to provide counsel accordingly.
Were you aware that you don’t have to file a repayment plan with a Chapter 7 Bankruptcy? According to the United States Courts, a trustee would collect and sell your assets to pay your debts instead. Repayment plans, however, are required with a Chapter 13 Bankruptcy case.
There are other significant differences between Chapter 7 and Chapter 13 cases. The United States Courts state that in order to file a Chapter 7, you would need to be an individual in need of having debts discharged rather than a partnership or corporation.
Anyone, with the exception of those with an incorporated business, can file a Chapter 13. The level of debt, however, does make a difference in whether or not someone is qualified to file. The United States Courts state that unsecured debts need to be under $383,175, while secured debts need to be under $1,149,525.
In order to file for bankruptcy, you will need to participate in both credit counseling and debtor education, according to the United States Courts. Prior to filing for bankruptcy, you would need to complete the counseling portion of this requirement. The debtor education, however, would be completed after filing.
The cost of filing a Chapter 7 Bankruptcy case will vary. On average, however, the price will range between $1,500-to-$3,000. In some cases, filing fees may be waived by the court.
A bankruptcy lawyer will be able to explain all of this in greater detail and respond to any questions that you may have. If you would like more information about how our legal team can assist you, please contact our office today.