WHAT IF… |
CHAPTER 7 |
CHAPTER 13 |
| I am behind on my mortgage payments? | You can discharge your mortgage debt, but the mortgage company can foreclose on your home | You can propose a repayment plan that allows you to keep your home |
| I am behind on my car payments? | You can discharge your car loan debt, but the lender can repossess your car | You can propose a repayment plan that allows you to keep your car |
| I owe back taxes to the IRS? | Certain types of older taxes can be discharged. Recent taxes and trust fund taxes (such as payroll taxes) cannot be discharged | Certain tax debts must be paid in full in your repayment plan. Some taxes can still be discharged |
| My income is above the Oklahoma median income for a family my size? | You may not be eligible for Chapter 7 relief unless unusual circumstances exist | Your repayment plan will be based on your ability to repay your debts |
| I filed for bankruptcy a few years ago? | You are not eligible for Chapter 7 if you received a bankruptcy discharge within the past 8 years | You can repay your debts through a repayment plan. However, if you received a Chapter 7 discharge within the past 4 years or a Chapter 13 discharge within the past 2 years, you can not receive another discharge |
| I owe mostly medical and credit card (unsecured) bills? | You can discharge these debts (subject to your eligibility for Chapter 7) | These debts can either be paid through a repayment plan or discharged |
| I am behind on my child support payments? | Chapter 7 does not prevent collection of past due child support, including contempt proceedings | You can repay your past due support debts in your repayment plan. You are required to remain current on continuing support payments |
| I own property that is not “exempt” (luxury goods, second homes, interests in businesses or investments) | Non-exempt property will be sold and the proceeds paid to your creditors | You can keep your non-exempt property by repaying your debts in Chapter 13 |
| I owe money on student loans? | Student loans cannot be discharged except in cases of “undue hardship” | Student loans cannot be discharged except in cases of “undue hardship.” Student loans are treated like other unsecured debts; you can repay them partially or in full depending on your ability to pay |
| I owe criminal fines or restitution? | Chapter 7 will not protect you from collection of criminal fines or restitution | Chapter 13 will not protect you from collection of criminal fines or restitution |
If you have any questions about bankruptcy Michael Rose can help. To schedule a free consultation, contact us or call (405) 605-3757.