Anyone that lives or has a property in the United States has the right to file bankruptcy. Some things that may prevent you from getting a discharge are:
- If you abuse the bankruptcy system or conduct fraud to get out of paying your debt
- If you have substantial income that you could pay your creditors with
- If you received a discharged within the last six years
To be able to file Chapter 7 bankruptcy, you must be below your state’s median income to have your debt eliminated in this type of personal bankruptcy. Chapter 7 bankruptcy is usually completed within three to six months and does not require you to make any payments to your creditors. Your qualifying debt will be eliminated at the end of your case. Most of the time, this includes your credit cards, medical debt, past utility bills, payday loans, and other unsecured debt.
To be eligible to file Chapter 13 bankruptcy, you must have a reliable source of income to be able to make your monthly payments to cover the back payments that you have missed. This type of bankruptcy is best for people that have secured debt that they are behind in payments for and would like to keep those assets. Chapter 13 involves a court-approved repayment plan for a period of three to five years. At the end of successfully making those payments, any remaining debt will be eliminated. You will need to continue to make your home and car payments if you wish to keep those secured assets.
If you are behind in your debt and wonder if filing bankruptcy would give you a fresh financial start, contact a Rio Grande bankruptcy attorney to find out what options you may have.