To begin, Chapter 7 bankruptcy differs from Chapter 13 in the sense that the first permanently wipes out a debtor's responsibilities to pay back financial debt, while the second only provides a limited payment plan. Typically, one can turn a Chapter 7 into a Chapter 13 if an individual fits the prerequisites.
Chapter 7 vs Chapter 13
Among the requisites for applying Chapter 7 is that a debtor should not be able to manage paying back his or her own financial obligations and is having a hard time fulfilling basic needs. In the event that someone's source of income has changed, only then can a person be permitted to seek a conversion from Chapter 7 to a Chapter 13 bankruptcy. Other than increase of cash flow, an individual should have unsecured debt that is under $360,475. The U.S. bankruptcy court likewise prohibits individuals who have financial obligations of much more than $1,081,400 from filing a Chapter 13.
Bankruptcy Lawyer, Free Bankruptcy Filing, Bankruptcy Lawyer,
After Chapter 7
When a Chapter 7 bankruptcy case has been cleared, a person cannot turn it to a Chapter 13. Normally, the court does not confirm a Chapter 13 bankruptcy request immediately after a Chapter 7 discharge. Commonly, a person should wait four years after a Chapter 7 discharge to apply for Chapter 13, and one can't file another Chapter 7 case for 8 years following the initial case has been cleared.
Possible Expenses For Switching To Chapter 13 Bankruptcy
One has to pay $299 to file a Chapter Seven. A person can apply for a Chapter Thirteen if a Chapter 7 bankruptcy case is not discharged yet. The conversion is free of charge. On the flip side, if the bankruptcy case is cleared already, a $274 fee should be paid to be able to file for a Chapter 13 bankruptcy. An individual who will be filing a bankruptcy must also retain the services of a bankruptcy attorney and it could cost up to thousands of dollars.
Impact On Credit Rating
A bankruptcy record will negative affect an individual's credit score with Experian, TransUnion, and Equifax credit agencies. The fact is, the credit standing is affected each time a person declares an individual bankruptcy. Whether or not a certain type of bankruptcy filing is successful, it's going to be reflected on the individual's credit report. This one must prepare for because high credit score are required for many types of financing. For the case of Chapter 7, an individual bankruptcy continues to be on the credit history for as long as a decade beginning with the date of discharge, while for the legal proceeding of Chapter 13, it's 7 years from the date of case discharge. An individual will also be forced to get the judge's permission to have other credit accounts if ever the individual has not yet completed the Chapter 13 repayment plan. A Chapter 13 repayment plan normally takes less than 6 years to finish, where as a Chapter 7 bankruptcy can take approximately a month, at least, or several months.
Bankruptcy Attorney In Los Angeles
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Attorney In Los Angeles
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment