Chapter 7 bankruptcy vs. Chapter 13 bankruptcy-- filing bankruptcy in Suffolk
County, Long Island - -
which is the better option?
Written by Suffolk County, Long Island chapter 7 and chapter 13 bankruptcy lawyer
Alan Pressman. Call me at 631-234-3883
If you are an individual filing a bankruptcy in Suffolk County on Long Island, you
should be aware that you have two options - - Chapter 7 or Chapter 13. But which
one is better?
If your problem is that you have unsecured debt such as credit cards, medical bills,
personal loans, a repossessed car debt, old utility bills, etc., which you cannot afford
to pay, Chapter 7 will almost always be the way to go. If you are able to pass the
Chapter 7 means test and if your assets are protectable in the Chapter 7, the Chapter
7 will enable you to discharge your credit cards, medical bills, repossessed car debt,
old utility bills, etc.,without the Bankruptcy Court taking any property from you. In a
Chapter 7 bankruptcy, you do not have to pay anything back to the unsecured
creditors, and you get your Chapter 7 discharge pretty quickly (approximately
3 - 4 months from when your Chapter 7 petition is filed with the Bankruptcy Court).
When does it make sense to file a Chapter 13 as opposed to a Chapter 7 bankruptcy?
You will want to file a Chapter 13 if you have mortgage arrears. The Chapter 13
stops your mortgagee from foreclosing against you, and it gives you 5 years to
repay your mortgage arrears. Normally, the mortgage arrears are spread out in
equal installments, over the course of 60 months. While you are paying back your
mortgage arrears over the 60 months, you also must make your regular monthly
payments to your mortgagee.
By contrast, the Chapter 7 bankruptcy does not help you get caught up with
mortgage arrears. If you file a Chapter 7 bankruptcy, you are on your own in terms
of getting caught up with any mortgage arrears.
Also, you will need to file a Chapter 13 bankruptcy, as opposed to a Chapter 7
bankruptcy, if your income is too high to enable you to file a Chapter 7 bankruptcy.
If you can’t pass the Chapter 7 means test because your income is too high, you
may be able to pay back just a small percentage of your unsecured debt (spread out
over a 5 year period - - typically in equal monthly installments for 60 months) in a
Chapter 13 bankruptcy. Although not as beneficial as discharging your debt
completely in a Chapter 7, the Chapter 13 can save you a lot of money in cases
where your income level qualifies you to pay back only a small percentage of your
unsecured debt. The percentage of your unsecured debt which you will have to
repay on a Chapter 13 bankruptcy can be (depending on your income level on the
means test) as low as 10% - - spread out over 5 years.
This article was written by Alan Pressman, Suffolk County bankruptcy lawyer
If you would like a free consultation on Chapter 7 bankruptcy with Alan Pressman,
call (631) 234-3883. I have been actively handling bankruptcy cases on Long Island
for more than 30 years. My office is located at 3100 Veterans Highway, Bohemia
(LIE exit 57-- approx. 2 miles southeast).
My fees are very reasonable.
Evening appointments are available.
I will handle your case personally.
My law practice is focused 100% on handling bankruptcy cases. Bankruptcy is
my entire law practice.
Call now for a free consultation.
3100 Veterans Highway, Bohemia, NY 11716
Long Island Expressway Exit 57, approx. 2 miles southeast
Thanks for taking the time to visit my website.
Copyright 2011-2017, Alan Pressman Attorney At Law
Alan Pressman, chapter 7 bankruptcy lawyer near Rokonkoma,11779; Hauppauge,11788; Bohemia,11716;
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