If you earn more than the median income for residents in your state, you may not be able to qualify for a Chapter 7 bankruptcy. There is, however, a way for even high-income debtors to qualify under Chapter 7.
In a chapter 13 bankruptcy filing, you can keep all of your property if your bankruptcy plan meets the requirements of the law. However, you will need to continue making payments despite your bankruptcy status.
Any friends or relatives who helped you get financing by cosigning a loan agreement will be protected from your debt if you file Chapter 13. However, if you file Chapter 7, they may be liable for any debts you don't pay.
If there is a divorce with divided debt, assets, and property, it does not prevent filing for bankruptcy. A qualified attorney can advise you on how your situation is addressed in bankruptcy filings, the information you need to provide, and what you can expect.
Individual circumstances vary, and while one type of bankruptcy filing may be right for one, it may not be right for another. For example, for those who have secured debt and a steady source of income, Chapter 13 may be the better option than Chapter 7.
While filing for bankruptcy can provide the fresh start that many Americans need to get back on their feet, some people view it as admitting failure. Remember, there’s nothing wrong with taking the legal steps necessary to put your financial house back in order.
