Chapter 13 bankruptcy requires that you be able to demonstrate your ability to pay all current necessary expenses first. Plan payment is made up of your disposable income. Based on your income you may not qualify for chapter 13. Meet with an experienced consumer bankruptcy attorney. Bring your pay stubs , tax returns and edtimated monthly expenses.
This answer is provided for information purposes only. It should not be relied upon as legal advice which can only be offered to clients in an office consultation setting when all the facts and circumstances can be fully considered and reviewed.
Maybe. It depends on whether your budget shows that you can afford a plan payment. To answer your other question, a chapter 13 often provides less than full compensation to creditors. Your attorney would want to look at the assets that you mentioned in your question to see if there was some amount that you had to pay back due to equity in unexempt property.
There are many factors that go into whether to file a Chapter 13 including but not limited to: whether you have any disposable income; whether you have income which exceeds the income allowed to file a Chapter 13 (whether you pass the means test); whether you would have assets that you would otherwise lose in a chapter 7; whether you are trying to do a cram down on a vehicle or an investment property; whether you have a foreclosure and for which you are trying to get caught up on your arrears and whether you have debts that are dischargeable in a 13 but not a 7. You really need to speak with a bankruptcy attorney to help you review your complete financial picture to determine which chapter is the best choice for you.
I agree with the other responses. The fact that you are asking these questions leads me to believe that you haven't even had a consultation with a bankruptcy attorney.
Whether you should file a particular chapter of bankruptcy, or file bankruptcy at all, can only be determined after a comprehensive examination of all relevant factors, including your income, expenses, assets, debts, goals, and other issues.
There are pros and cons to each chapter. You should schedule a consultation with an experienced bankruptcy lawyer in your area to explore these further.
Legal disclaimer: Mark J. Markus practices law in California only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation.
I will cut to the chase, if your annual income is only $12k or so, you do not have sufficient income to fund a Ch13 plan. You should seriously consider a Ch7 and should consult with a bankruptcy attorney who can review your situation and see if your assets can be protected using the exemptions available under NY exemption statutes.
DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area. I am a Federally Designated Debt Relief Agency under the United States Bankruptcy Code. I proudly help people in financial need file bankruptcy cases. IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).
The first question is why not do a chapter 7? MOst chapter 13 cases only pay cents on the dollar to unsecured creditors! Is there a prior ch 7 stopping you? (8 years between filings) ? Or do you have a type of debt NOT discharged in ch 7 but is in a ch 13?
If no reason not to file a ch 7 file it instead. If you cannot, the only real issue is can you afford a ch 13? If you pay $85 a month for 3 years here in my state, that will suffice assuming you don't have priority taxes, past child support, etc. MOst states it is similar as the Bankruptcy Code does NOT state you must pay a certain amount! If you can, increase the number of allowances on your paychecks so you have more money to live on now especially if you receive a tax refund of more than that difference x 12 months so you receive a smaller tax return and more money to live on.