When to file a Chapter 7 or 13 bankruptcy?

When an individual doesn’t qualify for debt relief under Chapter 7 because they make too much money or had a prior Chapter filing, that person can file Chapter 13 instead. A Chapter 13 bankruptcy case is a debt reorganization.

What happens to your credit when you file Chapter 13 bankruptcy?

A completed Chapter 13 bankruptcy stays on your credit report for 7 years after the filing date, or 10 years if the case was not completed to discharge . As a result, filing bankruptcy will initially lower your credit score.

Can you file another chapter 13 case after it is dismissed?

Whether you can file another Chapter 13 case immediately after a dismissed Chapter 13 depends on the reason why the Chapter 13 case was dismissed. If this wasn’t your first bankruptcy case in a short period of time, the bankruptcy court could prevent you from filing another Chapter 13 case for a specific period of time.

How long does a Chapter 7 bankruptcy stay on your credit report?

How long it shows up depends on which type of bankruptcy you file. Chapter 7 bankruptcy remains on your credit report for 10 years after the filing date. A completed Chapter 13 bankruptcy remains on your credit report for 7 years after the filing date, or 10 years if the case was not completed to discharge .

When to file for another chapter 7 bankruptcy?

If you filed for Chapter 13 bankruptcy. You’ll have to wait four years before you’ll be able to receive another Chapter 7 discharge. If you need relief from aggressive creditors before you’re entitled to a discharge, you might consider filing for Chapter 13 bankruptcy.

What happens if you don’t file for bankruptcy?

Also, if you don’t file all of the paperwork, the bankruptcy court might dismiss your case, or you might have to file additional papers to correct the paperwork and pay more fees. If you leave a creditor out, that debt might not get discharged. And, if you forget to include an asset, the Chapter 7 trustee might find it and take the property.

What happens to your assets when you file bankruptcy?

For most people who file bankruptcy, discharge is the goal. In exchange for that discharge, the bankruptcy system requires that a Chapter 7 or Chapter 13 debtor – the person who files a bankruptcy case – give up non-essential assets, which will be distributed to creditors to satisfy debts.

What happens to child support if you file bankruptcy?

Any debts you owe for child support will not be discharged in the bankruptcy case. If you file a Chapter 13 repayment plan case, you’ll have to pay off your past-due support by the end of the three- to five-year plan. In a Chapter 7 case, the debt will survive the bankruptcy.