How Can Filing Bankruptcy Online Help You?
For many debtors, filing bankruptcy online can provide that much needed path out of overwhelming debt and create a way to a fresh financial start. However, whether bankruptcy may be best debt relief strategy for you depend on several factors based on your specific situation. Our experts at ZocLaw.com provide more information on points to consider if you are thinking about filing a Chapter 13 or a Chapter 7.
Will Filing Bankruptcy Online Help You?
Before filing bankruptcy, it is always a good idea to carefully evaluate all of your options. Take into consideration the type of debt you have and the goals you wish to achieve by filing bankruptcy online. There are certain types of debt that cannot be discharged. These are referred to as secured debt. If you are attempting to wipe out mostly secured debt, then bankruptcy may not be in your best interest. Furthermore, many creditors may be willing to work with you to settle your debt.
Do You Qualify for Bankruptcy?
Whether you file a Chapter 7 or a Chapter 13, you have to meet specific eligibility criteria. In the case of a Chapter 7 bankruptcy, your income must be low enough to satisfy the requirements of the bankruptcy Means Test. For a Chapter 13 bankruptcy, the amount of debt you owe cannot exceed a certain dollar amount.
Are You Facing Any Lawsuits?
The inability to pay back debt may result in creditors taking you to court in order to recover outstanding debt. If your creditors are successful in obtaining a judgment, your wages may be garnished or liens may be placed on your assets.
When you declare bankruptcy, the automatic stay goes into effect prohibiting creditors to engage in any debt collection activities, including lawsuits. If you are facing any lawsuits, filing bankruptcy may help you stop the lawsuit and eliminate the debt.
Are you facing foreclosure on your home?
If you have any secured debt like mortgage or car loan, you may risk facing foreclosure or repossession if you are unable make good on your obligations. Although bankruptcy cannot wipe out such debt, it may stop or delay the foreclosure or repossession process. Furthermore, a Chapter 13 bankruptcy may help you:
• Make up missed payments.
• Lower the balance of a loan provided that you are eligible for a cramdown.
• Completely eliminate junior liens from your home through lien stripping.
To learn more about a Chapter 13 bankruptcy, please see our article on filing Chapter 13 bankruptcy online.
How Much Of Property You Own
Perhaps one of the most important factors to take into consideration is how much of property you own. Bankruptcy exemptions safeguard certain property from being seized during the bankruptcy process. It is important to consult with an experienced bankruptcy attorney to find out how to protect valuable property.
Should You File a Chapter 13 or a Chapter 7 Bankruptcy?
Whether you should file a Chapter 7 or 13 online depends on several factors including:
• Your expenses and income.
• The types of debt you owe.
• If you own any non-exempt property.
• What you wish to achieve by filing bankruptcy.
To learn more about which Chapter may be best for you, please click here.