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THE TRUTH ABOUT BANKRUPTCY
Congress enacted new bankruptcy laws effective Oct. 17, 2005. A number of media reports & creditors have left you believing that it was impossible to get relief from financial problems by filing bankruptcy.
The fact remains that chapter 7 and 13 bankruptcy is available to allow people in financial trouble to get a fresh start.
Chapter 7 takes away most debts. Chapter 7 allows you to retain automobiles or homes, providing you maintain your payments and keep them current. Recent taxes are not eliminated. Government Guaranteed Student Loans are not eliminated. Only in some extreme and special hardship circumstances will student loans discharge. Most other debts are eliminated or discharged with a chapter 7 bankruptcy.
Chapter 13 also eliminates most debts as a chapter 7, but a chapter 13 requires a monthly payment to court for a period of 36-60 months.
Chapter 13 is required for higher income families. If the families income is above the median income the family will probably be required to file a chapter 13.
(figures updated 3-15-2010 per lastest IRS guidelines)
Family size Median Income
1 $38,929
2 $50,710
3 $54,328
4 $61,816
add $7,500 for each additional family member
Those who file a chapter 13, and are above the median income will be required to make monthly payments to the court for 60 months to pay a portion of the unsecured debt owing. The payments are based upon your monthly income. Those who file a chapter 13 and are below the median income will also be required to make monthly payments to the court, but may be a payment plan that runs for 36-60 months.
Chapter 13 can also be used to retain a home, if a family is behind in payments, or to pay delinquent personal taxes.
You can get out of debt and rid of financial problems.
Check into your options under the new bankruptcy law.
For fast, easy, & free information call
Bankruptcy Information
(405) 949-5544
