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Posts Tagged ‘Chapter 7 vs. Chapter 13’

Can I file for bankruptcy if I am retired?

November 19th, 2008

If you are thinking about filing a Chapter 7 bankruptcy, individuals who have retired file quite often. Many times, people think that they have enough money in savings to survive after retirement, but after a period of time, they find out that they have fallen short on their plans. Often, a medical problem or an unforeseen situation causes individuals in retirement to experience financial difficulty.

In a Chapter 13, a wage earner is defined as an individual with a steady, monthly income and retirement income, pension or social security is often used to help retired folks qualify to consolidate all of their debt.

Posted in Chapter 7 Bankruptcy, Chapter 7 vs. Chapter 13 | 1 Comment »

When is Chapter 13 a better option than filing a Chapter 7?

November 12th, 2008

A Chapter 13 is a better option when you have a mortgage that is behind in payments. A Chapter 13 allows you to consolidate the arrearage in mortgage payments and pay the amount back over an extended period of time. If you file for straight bankruptcy (Chapter 7) and want to keep your home, you must be current on the payments on the date of the filing of the Chapter 7. The same is true with an automobile. Chapter 13 is a better option when you have a car note that is behind in payments. A Chapter 13 allows you to stop the repossession of the automobile and pay the car note back over an extended period of time.

Posted in Chapter 7 vs. Chapter 13, Concerns About Filing For Bankruptcy | No Comments »