EVERYTHING YOU WANTED TO KNOW ABOUT BANKRUPTCY
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WHAT IS THE DIFFERENCE BETWEEN CHAPTER 13 and CHAPTER 7?In short, Chapter 13 is a consolidation payment plan without, in most cases, having to pay everyone back. Chapter 7 is not a payment plan, but you can lose your property (house/car) in some cases. Want to save a car or a house you've fallen behind on? Have problems paying student loan amounts each month? Recent tax debt issues? Chapter 13 may be your best option. Earning low income or unemployed with no house or car payment? This could be a Chapter 7. Contact us for more information.
HOW MUCH DOES IT COST TO FILE?
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WHAT IS THE IMPACT ON MY CREDIT?Well, let's look at it this way. Credit, or the ability to borrow, is what got you into this pickle in the first place! It's kind of like wanting to buy a gun after the gun went off and shot you in the foot. In general, borrowing is something we want to avoid. That being said, sometimes you might need to borrow after filing bankruptcy whether it is for a car, a house or an emergency credit card. While there is no simple answer, Chapter 7 is on your record for 10 years, and 13 for 7 years after filing. In short, the higher your income, the more likely it will be for you to be able to borrow again in the future.
DO I HAVE TO GO TO COURT?While your attendance at a Trustee hearing called a 341 meeting of creditors is mandatory in both 13 and 7, in most cases you will NOT have to attend a Court hearing in front of a Judge. This is not like Judge Judy or The People's Court - it's more like a parent-teacher conference where you sit at a table, flash your ID and answer a few standard questions. I AM MARRIED. HOW TO I EXCLUDE MY SPOUSE FROM THIS? The first thing you should know is that unless you have physically and legally separated, your spouse's income will usually be included for the determination of household income, but that will not affect your spouse's credit. While your spouse does not need to file necessarily, you and your spouse are 'pooled' together for the purposes of determining household disposable income. Also, while some people may want to 'save the credit' of the other spouse, if they have a substantial amount of debt, in those cases it makes sense for both spouses to file jointly. That being said, if your spouse does not wish to file, your spouse's credit will NOT be affected. DO YOU OFFER FREE CONSULTATIONS? Yes. Call us at 303.630.9641. CAN I PROVIDE DOCUMENTS BY EMAIL OR FAX? Yes. In fact, as long as we can verify your identity, we can handle the entire process by phone and email. Gather together State and Federal tax returns for 2 years, proof of income for two months for you and your spouse (if any) and a credit report from www.annualcreditreport.com (it's free). Please redact or black out account numbers and social security information before sending. |
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