Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Are you thinking about filing a Chapter 7 or a Chapter 13 Bankruptcy?
An attorney will charge around $3000, but many will allow you to pay the fee over the course of the Bankruptcy, which lasts up to 5 years.
The attorney will need all financial information for the past year or so - paystubs if working, bank account statements, any other financial account statements, award letters if any public benefits are involved (such as Social Security), life insurance statements, a list of all expenses, a list of all debts, income tax returns for the past 2 years.
Additionally, there is a $274 court filing fee, and up to $100 for the 2 credit counseling classes that have to be taken.
I think this is what you wanted to know. If not, please let me know.Thank you!
The Chapter 13 monthly payment is not a percentage of your income.
Why do you want to file a Chapter 13 instead of a Chapter 7? With a Chapter 7 you don't have to pay anything.
A Chapter 13 remains on one's credit report for 7 years, and a Chapter 7 remains on one's credit report for 10 years. So yes, one's credit improves faster with a Chapter 13.
The Chapter 13 monthly payment is all disposable income, but not including any Social Security. So the payment would be your wife's take home pay, minus all allowable expenses.
The monthly payment is not a percentage of what is owed. It is only based on what the disposable income is.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).