Learn More About Filing for Bankruptcy in Tuscon Here
Anything truthful can stay on your credit report for ten years. The lasting effect it will have on your credit score will depend on what it was before you filed. If you had a good credit score, your bankruptcy will greatly affect your credit score more than if you had a lower score. If you use your credit wisely after you file for bankruptcy, you can improve your credit score. By paying your bills on time and being financially responsible, you can rebuild your credit to apply for a credit card or a mortgage within a few years.
If you file for Chapter 13 bankruptcy, you will be able to keep your property while paying off your debts. If you file for Chapter 7 bankruptcy, you may be able to protect your property through bankruptcy exemptions. Having a bankruptcy consultation with an experienced Tucson bankruptcy attorney can help sort out all of these details.
Under Chapter 13 bankruptcy, you can pay back the debt over 3-5 years. Your monthly payments will be based on your disposable income. It is possible to pay back less than your full amount of debt under Chapter 13 bankruptcy. Most people can discharge some of their debts once their repayment plan is over.
Credit counseling through a nonprofit agency is required to qualify for bankruptcy. This can be done in person, online, or over the phone. To get started you will need all information about your debt and income. The counselor will decide if you would benefit from a debt repayment plan or a bankruptcy alternative. You are not obligated to follow their plan but must participate in the credit counseling.
You can file for Chapter 7 bankruptcy more than once. But, once you receive a discharge of your debts, you cannot get another under Chapter 7 within eight years of your first filing. If you filed for Chapter 13 bankruptcy, you must wait at least two years from the date your first bankruptcy was filed. There are also time limits when it comes to receiving a Chapter 13 bankruptcy discharge after filing for Chapter 7 bankruptcy and vice versa.
A “means test” is used to determine whether or not you will be able to repay your debts. To qualify for Chapter 7 bankruptcy, you must pass this test. It will determine if your income is more or less than the median income in your state. If your income is less, you qualify for Chapter 7 bankruptcy. If you earn more, your disposable income will be looked at to see if you have enough money to repay some of your debts.
Your bankruptcy case can be dismissed if you committed fraud or if you didn’t comply with any applicable rules or laws. These include completing credit counseling, paying filing fees, or attending the meeting of creditors. If you fail the Chapter 7 means test, the trustee can dismiss your case or give you the option to file for Chapter 13 bankruptcy. If you fail to make payments under your Chapter 13 repayment plan, your case can also be dismissed.
Any debt that is not secured by collateral, such as credit card debt, is considered unsecured debt. Any unsecured debts will be addressed in bankruptcy cases after secured debts are taken care of. Debts that have been secured by collateral, such as mortgages and cars, are considered secured debt. Secured debts have priority in bankruptcy cases. If you fail to make payments, creditors can seize property that is secured by collateral.
The costs of filing Chapter 7 and Chapter 13 bankruptcy will vary from case to case. It will cost more if you have judgments as well as secured creditors that will require reaffirmation agreements. You can expect to pay more if you’re self-employed as well because your case will be more complicated.
We offer everyone a free consultation to help you decide if filing for bankruptcy is right for you. You can expect an honest, experienced opinion from our firm as well as a clear analysis of how bankruptcy laws apply to your case.
Watch the following YouTube video featuring retired judge Charles G. Case II for the potential implications of filing for bankruptcy without an attorney.