Is Filing Bankruptcy Online a Good Idea?
Is Filing Bankruptcy Online A Good Idea For Me?
So, you find yourself in a financial mess, and you’re probably considering filing for bankruptcy. With the multiple options available pertaining to filing bankruptcy online, how do you if it is a good idea for you. Our experts at ZocLaw.com explore a few important factors to take into consideration before answering “is filing bankruptcy online a good idea?”
Understand the types of bankruptcy available: Chapter 7 and Chapter 13
Chapter 7 bankruptcy process is when all or most of your unsecured debts are eliminated in approximately 3 to 6 months.
Chapter 13 bankruptcy process is when you use your income to pay of your debts according to a repayment plan over a period of 3 to 5 years.
Ensure that you qualify for bankruptcy
Whether you decided to file for a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, each Chapter has specific requirements which have to be met in order for you to qualify. For example, you may not qualify for a Chapter 7 bankruptcy if you have sufficient income to repay your debts in a Chapter 13 payment plan, as Chapter 7 has an income limit. On the other hand, you may not qualify for Chapter 13 if your debts are too high and your income too low.
Find out which debts won’t be eliminated
Another important factor to take into consideration before answering is filing bankruptcy online a good idea is whether all of your debt will be discharged. There are a few debts, such as child support obligations that cannot be eliminated in a bankruptcy. Before you move forward with filing bankruptcy online, it is important to understand whether your debts will be eliminated.
Consider what will happen to my home if you file I bankruptcy online?
Depending on the details of your case, filing bankruptcy may not relieve from paying your mortgage, however other debts may be eliminated thus making it easier to pay your mortgage. If you have a significant amount of equity in your home, you may lose your home if you file for a Chapter 7, however this depends on how generous the exemptions laws are that are available to you. Whereas, if you file a Chapter 13 bankruptcy, you may keep your home and pay off any mortgage arrears through your repayment plan.
What About Other Property Such As My Car?
This will depend largely on the exemption laws applicable to you and whether you have pledged the property as collateral for a debt. With a Chapter 7 bankruptcy you may lose your car if you have a significant amount of equity that is not protected by your state’s bankruptcy laws.
Will My Credit Card Debt Be Eliminated?
Filing for bankruptcy is a good way to eliminate credit card debt and other unsecured debts, unless you spent irresponsibly or lied on your credit application. However, this depends on whether you file a Chapter 7 or a Chapter 13 bankruptcy online.
How Will Filing Bankruptcy Affect Your Co-signers?
If a friend or relative assisted you in obtaining finance by signing the loan agreement as a surety, Chapter 13 will protect your surety, however Chapter 7 will stick them with any debt you do not pay.
How Will Filing Bankruptcy Impact My Personal Life?
You may feel as though your personal information is being made known to the public as you have to disclose every last detail of your finances to the court, and other people may find out about your bankruptcy. However, filing for bankruptcy will provide you with the financial freedom you require so that you may start afresh once again, so who cares what people think; you are doing this for you not them.
Before answering is filing bankruptcy online a good idea, take these very important factors into consideration, and if youhave nay questions, please feel free to reach out to our bankruptcy attorneys.