How Much Will A Bankruptcy Help Me?
Your answers to the following questions will decide how much help you will get by filing a bankruptcy:
What types and amounts of debts do you have?
- Do you have old or recent credit card debt?
- Do you have medical bills?
- Do you owe old or recent income taxes?
- Do you have car loans or leases?
Some types of debts cannot be wiped out in a bankruptcy. The rules are more complicated than most people think.
What types of assets do you have?
- Do you have $300 in the bank? Or $3,000 or $30,000?
- Do you own a house with $350,000 in equity? Or no house?
If you do not have a lot of money, stock, or a lot of equity in your home, you can probably keep your assets. An experienced attorney can explain this.
What type and amount of income do you have now and have you had in the last seven months?
- Are you earning $15,000 per year? Or $75,000? Or $150,000?
- Are you unemployed, disabled, or retired?
If your income has been high during the last seven months, you may not qualify for a Chapter 7. Even if you do not qualify to file a Chapter 7, you may be able to wipe out most of your debt by filing a Chapter 13 instead. Timing your bankruptcy often is important in increasing the amount of your debt that can be wiped out. Again, an experienced attorney can help you.
Where have you lived in the last three years?
- Have you lived in California for the whole time or not?
The rules regarding what assets you can keep in your bankruptcy are much more complicated if you have not lived in California for the last 2-1/2 or 3 years.
Have you filed bankruptcy before during the last 8 years?
If you have filed bankruptcy during the last 8 years, the rules regarding filing a new case may affect the type of bankruptcy you are permitted to file and the determine the earliest date you can file the new case. An experienced attorney will be able to explain this to you.
(c) 2006 Gold and Hammes, Attorneys
Back to:
Main Page
Bankruptcy Myths and Frequently Asked Questions
Why Not Filing Bankruptcy Can Slow Your Credit Recovery
California Median Family Income
Santa Clara County IRS Expense Allowances
Nationwide 150% of Poverty Level
Procedure after filing Chapter 13 - SCC
Procedure after filing Chapter 7 - SCC
