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The Short Answer to "Can I Keep My Home in a Chapter 13 Bankruptcy?" One of the most common questions we are asked by prospective clients is "can I keep my home in a chapter 13 bankruptcy." While the answer has some moving parts, fortunately, in a Chapter 13 bankruptcy, you will not lose any property to the trustee, including your house. The bankruptcy will also not have any effect on your mortgage. Although you will not lose your home during a Chapter 13 bankruptcy, it is still possible to lose your house through foreclosure proceedings. To keep that from happening, [...]

Short Answer to the Question "Can I Keep My Home in a Chapter 7 Bankruptcy?" One of the first questions that everyone has when considering bankruptcy is "Can I Keep My Home in a Chapter 7 Bankruptcy?" When you file for Chapter 7 bankruptcy, it just depends on how much equity is available in your home, how much of a homestead exemption is available in your situation, and whether or not you are current on the mortgage payments. Another thing to keep in mind is even if you are able to keep your home when you file bankruptcy, do you want [...]

When you reach the point at which you are ready to file for bankruptcy, it is important to determine what type of bankruptcy is best for your situation. A bankruptcy means test can help you decide. A means test determines if you make enough money to repay at least a portion of your debt through a Chapter 13 bankruptcy repayment plan or if you qualify for a Chapter 7 bankruptcy instead. Take a look at the details of a chapter 13 means test below. Who Takes the Chapter 13 Means Test If you have an income that is greater than the [...]

When you file for bankruptcy, you will be required to take a means test. This is a test that will determine if your income is low enough to qualify you for a Chapter 7 bankruptcy. This test is formulated to prevent high-income people from filing for this type of bankruptcy. If you fail the Chapter 7 means test, you can then file for a Chapter 13 bankruptcy instead. A Chapter 7 means test does not require you to be penniless to pass. You can still earn a significant income and qualify for a Chapter 7 bankruptcy if you have numerous expenses, such as [...]

Why You Should Consider Chapter 13 Bankruptcy Chapter 13 bankruptcy is sometimes referred to as the wage earner’s bankruptcy plan. It allows individuals with a consistent income to create a plan that helps them repay a portion or all of their debt. In Chapter 13 bankruptcy, debtors create a payment plan to make payments over three to five years to their creditors. If their income is less than the median income of the state, the plan will be made for three years unless a longer period is approved by the court. Debtors are rarely allowed to create plans for longer than [...]

Why You Should Consider Chapter 7 Bankruptcy  Chapter 7 bankruptcy is much different from Chapter 13 bankruptcy in that it does not involve filing a repayment plan. Instead, the trustee for the bankruptcy will gather and sell the debtor’s assets that are not exempt and use the proceeds of the sales to pay any creditors according to the Bankruptcy Code provisions. Some of the property could be subject to mortgages and liens that pledge certain property to creditors. The Bankruptcy Code allows the debtor to keep some exempt property, but the remaining assets will be liquidated by the trustee. You need [...]