Hoang Nguyen & Associates covers Chapter 7 & Chapter 13 bankruptcy filings. Please contact our office to find out what type of bankruptcy will provide the most protection for your particular case.
Chapter 7 Bankruptcy covers the liquidation of the debtor’s nonexempt property in order to pay creditors. This type of bankruptcy does not involve submitting a plan for the repayment of the debt as does a Chapter 13 filing. It is important to note that a Chapter 7 filing could result in the loss of property such as homes depending on the mortgage and liens on the property.
Chapter 7 Eligibility
Individuals, partnerships, or corporations can file for Chapter 7 bankruptcy relief.
- Relief is available irrespective of the amount of debt.
- An individual cannot file for Chapter 7 bankruptcy if the debtor filed a bankruptcy petition in the last 180 days and failed to appear before the court or failed to comply with the orders of the court.
- An individual can only be a debtor under a chapter 7 filing if he or she received credit counseling from an approved credit counseling agency.
Chapter 13 Eligibility
Chapter 13 Bankruptcy provides the opportunity for a debtor to adjust debts as long as the debtor has regular income. The most important benefit of a Chapter 13 Bankruptcy filing is that it allows the debtor to create a plan to repay all or part of debts over time while keeping property as long as the debtor has a regular income stream. There are a number of benefits to Chapter 13 bankruptcy filing over a Chapter 7 liquidation filing:
- The debtor has the opportunity to save their home from foreclosure.
- Individuals can reschedule the payments on secured debts (other than the mortgage payment) and extend them through the life of the chapter 13 repayment plan.
- A trustee is appointed for a chapter 13 filing and all payments to creditors go through this trustee, keeping the debtor away from contact with creditors during the chapter 13 protection period.
- Married individuals may file a joint petition or a separate individual petition.
An individual can proceed with a chapter 13 bankruptcy filing if unsecured debts are less than $360,475 and secured debts are lower than $1,081,400.
- A partnership or corporation is not eligible to be a chapter 13 debtor.
- An individual cannot file for Chapter 13 bankruptcy if the debtor filed a bankruptcy petition in the last 180 days and failed to appear before the court or failed to comply with the orders of the court.
An individual can only be a debtor under a chapter 7 or 13 filing if he or she received credit counseling from an approved credit counseling agency.