Bankruptcy is possibly one of the largest decisions you will make in your lifetime. As with any important decision, you really need to know all the facts before you make a move. That’s where I come in; I’ll help you develop an accurate picture of your financial situation and discuss if bankruptcy is right for you.
The first step will be conducting the means test to determine which chapter of bankruptcy will serve you best. Chapter 7 may be a good option for you, however you may be ineligible due to a high income or assets. If that is the case, a Chapter 13 may be a better fit. Don’t worry if you’ve already started filing a Chapter 7; I can help you do a one-time conversion from a Chapter 7 to a Chapter 13.
I’ll help you file a motion with the court explaining your reasons for the conversion. With a Chapter 13, you’ll be able to keep much of your assets by keeping up with a new payment plan. We’ll need to show the court that you have the ability to make the payments agreed upon in the plan.
Why Would I Convert?
A Chapter 7 bankruptcy is a great option, and oftentimes discharges most, if not all, of your unsecured debt. The downside is that you may want to keep some of your property tied to secured debts, such as your home, vehicle, or other items. In that case, you may want to convert to a Chapter 13, where you will establish a payment plan and are able to keep some of your assets.
You may wonder what happens if you file a Chapter 7 bankruptcy but still can’t keep up with your secured debts, such as alimony or child support payments. You still have the option of converting from a Chapter 7 to a Chapter 13 and attempting to reduce your payments to fit your financial situation and income.
A Chapter 13 may also allow you to “cram down” your mortgage, saving you money, while protecting your home.
The court will assign a trustee, and their job is to evaluate your property to determine if any of it may be sold to repay your creditors.
There are several exemptions that we can consider, and we’ll use everything we can to protect your property. It’s important to be aware that in Chapter 7, the trustee may be able to take your non-exempt property as well. However, if you convert to a Chapter 13, your non-exempt property will be safe. I am here to help you walk through this process.
Make the Best Choice
Life is often full of twists and turns, some of which are better than others. When life takes an unexpected turn that leaves you in financial hardship, there is no shame in facing the problem head on. Let me help you face this stressful situation and guide you to a better financial future.