You . . .

Chapter 7

Chapter 13

are behind on your mortgage or car loan.

You will probably have to either give the creditor the house or car or make arrangements to pay its value in full during the bankruptcy case.

The arrearage can be paid through the Chapter 13 plan, over three to five years. You can keep the car or house if you remain current on the monthly payments.

have valuable nonexempt property.

You will either have to: (i) give it up;
(ii) pay its fair market value to the trustee (we can help you negotiate value and payments); or
(iii) if the trustee agrees, you can exchange equally valued exempt property for the nonexempt property.

You keep all of your property.

want to keep secured property by paying the creditor its value.

You will have to pay the wholesale value of the property in a lump sum.

You may pay the replacement value, with interest, through your Chapter 13 plan.

owe the IRS back taxes.

Most taxes can’t be eliminated in bankruptcy, but some can. The result depends on your particular circumstances. Some taxes and penalties are dischargeable. Call for a free consultation to discuss your particular situation.

Most taxes can’t be eliminated in bankruptcy, but some can. The result depends on your circumstances. Some taxes and penalties are dischargeable. Taxes that can’t be discharged can be paid in a Chapter 13 plan. Call for a free consultation to discuss your particular situation.

have codebtors on personal loans.

Your creditors may go after codebtors for payment.

Your creditors may not seek payment from a codebtor during the duration of your case.

have sufficient disposable income to fund a Chapter 13 plan.

N/A

The court might dismiss your case or convert it to Chapter 13.

have a current monthly income that does not exceed the median family income for your state.

You are allowed to file under Chapter 7.

If you choose to file Chapter 13, you may propose a 36 month repayment plan.

have a current monthly income that does exceed the median family income for your state.

If the means test shows you can fund a Chapter 13 plan, the court will dismiss your Chapter 7 case unless you convert it to Chapter 13.

You must propose a 60 month repayment plan.

owe debts for past due or future “domestic support obligations,” such as alimony or child support.

These debts cannot be erased in a Chapter 7 bankruptcy. Even worse, filing bankruptcy will allow domestic support creditors to proceed against your exempt property to collect the debt.

These debts can be included in your Chapter 13 repayment plan, but any unpaid balance cannot be erased. Unpaid domestic support creditors will be allowed to proceed against your exempt property to collect the unpaid debt. During the case, your failure to pay post-petition support will prevent confirmation, will prevent entry of your discharge order, and may result in the dismissal of your case.

owe debts for:

• student loans, unless repayment would cause severe hardship
• dues/assessments owed to a homeowner or condominium owner association
• court-ordered restitution or criminal fines
• taxes less than three years past due, or
• debts for personal injuries arising from DWI/DUI.

These debts cannot be discharged under Chapter 7.

These debts must be paid in full in a Chapter 13 plan or the balance will be owed at the end of the case.

owe nonsupport debts under a property settlement agreement or divorce decree.

If your ex-spouse or another creditor objects, these debts are not discharged

If you do not pay them in full during your Chapter 13 bankruptcy, the balance is discharged.

incurred debts just before filing, including debts of $500 or more to a creditor for luxury goods or services purchased within 90 days before filing, or debts for cash advances of $750 or more obtained with 70 days before filing.

These debts cannot be discharged in a Chapter 7 bankruptcy.

These debts can be included in your Chapter 13 repayment plan, but cannot be discharged if the creditor objects and proves the bad act .

owe money due to willful/malicious injury to property or to a person who has not yet been awarded damages or restitution by a court.

These debts are not dischargeable if the creditor objects and proves the bad acts to the court.

These debts can be included in your Chapter 13 repayment plan. If you do not pay them in full during your case, any unpaid balance is wiped out at the end of the case.

owe money due to:

• fraud, breach of trust, or embezzlement
• larceny (theft), or
• willful and malicious injury to another or another’s property.

These debts are not dischargeable if the creditor objects and proves the bad acts.

These debts can be included in your Chapter 13 repayment plan, but cannot be discharged if the creditor objects and proves the bad acts.

received a bankruptcy dismissal in the past year.

The automatic stay expires after 30 days as to debts/collateral for debts.

The automatic stay expires after 30 days as to debts/collateral for debts, unless the prior case was a Chapter 7 dismissal for “abuse”.

received two or more bankruptcy dismissals in the past year.

The automatic stay does not take effect.

The automatic stay does not take effect, unless the prior case was a Chapter 7 dismissal for “abuse.”

received a previous bankruptcy discharge.

You can’t receive a new Chapter 7 discharge if your prior Chapter 7 or Chapter 11 discharge was in a case filed less than 8 yrs ago; or if your prior Chapter 13 discharge was in a case filed less than 6 years ago (unless you repaid at least 70% of your allowed unsecured claims).

You can’t receive a new Chapter 13 discharge if your prior Chapter 7 discharge was in a case filed less than 4 years ago or if your prior Chapter 13 discharge was in a case filed less than 2 years ago.