Will I lose my house if I file Chapter 7?
You might lose your house in Chapter 7 bankruptcy—but many people don’t. Whether you get to keep it depends on a few key factors: ✅ You Can Likely Keep Your House If: You’re current on your mortgage payments, and Your home equity is fully covered by a bankruptcy exemption, and You intend to keep making […]
What is too much income for bankruptcy?
“Too much income” only becomes a problem in Chapter 7 bankruptcy, where your income must be low enough to qualify. If it’s too high, you may be disqualified under the means test and have to file under Chapter 13 instead, where you pay back some of your debt over time. Here’s how it works: 🔹 […]
Which debt can never be erased by bankruptcy?
While bankruptcy can eliminate many debts, there are some that are considered non-dischargeable—meaning they cannot be erased, or can only be erased in rare circumstances. Here’s a breakdown of the debts that are almost never wiped out in Chapter 7 or Chapter 13 bankruptcy: 🔒 Debts That Are Never Dischargeable (Except in Very Rare Cases) […]
Is it better to file Chapter 7 or 13?
Great question. Whether it’s better to file Chapter 7 or Chapter 13 depends entirely on your goals, income, assets, and types of debt. Each chapter offers different kinds of relief, and what’s “better” for one person might be a huge mistake for another. Let’s break it down in a way that helps you choose the […]
What is the minimum payment for bankruptcy?
The term “minimum payment for bankruptcy” can mean different things depending on what kind of bankruptcy you’re filing—Chapter 7 or Chapter 13—and what part of the process you’re asking about. Let’s break it down: 🔹 1. Chapter 7 Bankruptcy (Liquidation) There is no required debt payment plan in Chapter 7. But you do need to […]
What disqualifies you from filing bankruptcies?
There are several reasons you can be disqualified from filing or completing a bankruptcy case—some apply before filing, and others arise during the process. Here’s a clear breakdown of the main disqualifiers for both Chapter 7 and Chapter 13 bankruptcy: 🔹 1. Too Much Income for Chapter 7 (Means Test Failure) If your income is […]
Can I file bankruptcy with $5000 debt?
Yes, you can file bankruptcy with just $5,000 in debt, but whether you should depends on your overall financial situation. ✅ When It Might Make Sense to File with $5,000 in Debt: You can’t afford to pay it back.If you’re living paycheck to paycheck, behind on bills, or facing collection calls, even $5,000 can feel […]
How do you pay a bankruptcy lawyer if you have no money?
Great question—how do you pay a bankruptcy lawyer when you’re broke? Ironically, most people who need a bankruptcy lawyer can’t afford one upfront. But lawyers know this, and many offer flexible ways to get paid. Here’s how people typically manage it: 🔹 For Chapter 7 Bankruptcy (Wipes Out Debt, But Upfront Costs Required) Chapter 7 […]
Is it better to hire a lawyer for bankruptcy?
Yes, in most cases, it is better to hire a lawyer for bankruptcy—especially if you’re filing under Chapter 7 or Chapter 13. While you can file on your own (pro se), doing so carries significant risks that could cost you more in the long run. Here’s a breakdown of why hiring a lawyer is generally […]
What are reasonable costs in bankruptcy?
In a bankruptcy case, particularly Chapter 7 or Chapter 13, “reasonable costs” refer to the ordinary and justifiable expenses involved in preparing, filing, and administering the case. These costs must be appropriate to the complexity of the case, customary in the jurisdiction, and often subject to court approval. Here’s a breakdown of what’s typically considered […]