I have $53000 in credit debt and make $38000, a small very small 401k and back child support of $200 monthly I receive. Children are grown and no other income or people in my household. Home and vehicle are current with never a late payment. Which is he better to file?
You need to determine which chapter is best for you. It depends on your circumstances. With your income, you would qualify for a chapter 7. A chapter 7 is usually over with in 90 days and you move on with your life. A chapter 13 would require 3 years of payments. Without meeting with you, I could not make a recommendation. You should meet with an attorney.
If you make too much money, you cannot file a Chapter 7. You would have to sit down with an attorney here in the Charlotte County/Lee County area to determine whether Chapter 7 is even a choice.
Jeffrey David SolomonChapter 7 Bankruptcy AttorneyHollywood, FL ·
Though it appears from your question that a chapter 7 would make sense instead of a several year payment plan, you need to consult with a local bankruptcy about your case. You might have assets over your exemptions from creditors-what is the equity in your car? Bottom line you need to have a complete review with an attorney to make a final decision.
It's not only a question of what is best for you but what they will allow. There is what is called a "means test" that will take you through the numbers to determine whether you can file a Chapter 13 or Chapter 7. I would contact a bankruptcy attorney in your area, perhaps one that can give you a free consultation, to go over the numbers, as they can be a bit tricky to do on your own and it is not advisable to go into Federal Bankruptcy court without an experienced attorney.
The main reason a person would voluntarily file for Chapter 13 bankruptcy is if they are behind on their mortgage or car payment, and want to keep their home or vehicle. Another reason would be if your assets are over your allowed exemptions. In Florida, you are allowed $1,000 in personal property and $1,000 in a motor vehicle if you are claiming the homestead exemption for your home. You need to value all of your property, furniture, tv's computers, etc. If all of your property is less than the $1,000 in personal property exemptions, and you dont have more than $1,000 in equity in your vehicle, then Chapter 7 would work for you. (Your income wouldn't stop you from qualifying for a Chapter 7).
So Chapter 13 would be best for you if you have assets over your exemptions and you want to keep them. Remember, if you receive a tax refund every year, the Trustee will prorate your return based on your date of filing. Keep that in mind before you file on your own....get a consultation with an experienced bankruptcy attorney so you know whether Chapter 7 would work for you or not.
