What is the difference between Chapter 7, 11 and 13 bankruptcy?
What are the income and debt limits and requirements. Is their an income to debt ratio used to determine what chapter you file. If this requires a answer to lengthy to answer here, can you give me a web site that explains it in LAYMEN TERMS.
If you qualify for Chapter 7, it can be used to make your unsecured debts go away. Unsecured debts are credit cards, medical bills, civil judgments, etc. There is now an income cap for Chapter 7, base on total grosshousehold income for the 6 months immediately prior to filing, then multiplied by 2 to calculate annual income. In Florida, the presumptively allowable number currently it is:
1 person $42,468 2 people $53,939 3 people $60,162 4 people $71,124
If a family has legitamtely necessary expenss above the norm, it might be possible to get the court to accept a slightly higher income and still qualify. Chapter 7 does nothing to assist with foreclosure, and all secured creditors are entitled to return of their collateral (such as cars) unless the debtor agrees to keep paying.
If you are over the income threshhold, you can only file a Chapter 13. Likewise, if you are trying to save your home from foreclosure, Chapter 13 may assist. It is a repayment plan, that runs from 3-5 years, If you have a mortgage arrears, you can pay it back in the plan, and as long as you do, and continue to make your current payments, the lender must live with that and can't foreclose. While you are paying in an approved plan, none of the creditors can sue you, and one you are done, whatever they didn't get in the plan you normally don't have to pay.