Comments on: Can i declare chapter 13 bankruptcy under these conditions in respect to the updated bankruptcy laws? http://www.bankruptcy-help-resources.com/can-i-declare-chapter-13-bankruptcy-under-these-conditions-in-respect-to-the-updated-bankruptcy-laws/ Quick Answers to Bankruptcy Questions & Understand How Bankruptcy Laws Affect You Thu, 03 Dec 2009 17:06:21 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Jonathan G http://www.bankruptcy-help-resources.com/can-i-declare-chapter-13-bankruptcy-under-these-conditions-in-respect-to-the-updated-bankruptcy-laws/#comment-528 Jonathan G Sat, 28 Feb 2009 03:22:08 +0000 http://www.bankruptcy-help-resources.com/can-i-declare-chapter-13-bankruptcy-under-these-conditions-in-respect-to-the-updated-bankruptcy-laws/#comment-528 The median income test tells you whether you are eligible for Chapter 7 - it is not really a test for Chapter 13, which is a repayment plan. If your income is below the median then you can choose to file a 7 or a 13. In order to file a 13, you need to have sufficient disposable income (money left over each month) to fund a plan that will last between 3 and 5 years. If you do not have any disposable income, you can file a Chapter 7, which will eliminate your debt entirely. There are many good bankruptcy resources on the Internet - the Bankruptcy Law network blog (www.bankruptcylawnetwork.com) has hundreds of bankruptcy related posts by a number of experienced bankruptcy lawyers from all around the country (full disclosure: I am one of those contributors). From my perspective $22,500 is, relatively speaking, not a huge amount of debt. I wonder if a repayment plan by Consumer Credit Counseling might be a better choice. The median income test tells you whether you are eligible for Chapter 7 – it is not really a test for Chapter 13, which is a repayment plan.

If your income is below the median then you can choose to file a 7 or a 13. In order to file a 13, you need to have sufficient disposable income (money left over each month) to fund a plan that will last between 3 and 5 years.

If you do not have any disposable income, you can file a Chapter 7, which will eliminate your debt entirely.

There are many good bankruptcy resources on the Internet – the Bankruptcy Law network blog (www.bankruptcylawnetwork.com) has hundreds of bankruptcy related posts by a number of experienced bankruptcy lawyers from all around the country (full disclosure: I am one of those contributors).

From my perspective $22,500 is, relatively speaking, not a huge amount of debt. I wonder if a repayment plan by Consumer Credit Counseling might be a better choice.

]]>