Thomsen Holman Wheiler PLLC attorneys offer services for Bankruptcy Law in Idaho Falls. There are two main prominent kinds of Bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy, often called liquidation bankruptcy, is really a process through which a trustee liquidates your nonexempt assets and distributes the proceeds to your unsecured creditors. Any remaining financial debt is discharged. If all your assets are exempt, then all of the personal debt are going to be discharged. Following discharge, your unsecured creditors are held back from ever collecting those debts. If you're behind on a secured loan such as a car or house, you'll have to bring the loan current before you decide to report bankruptcy under chapter 7 or make other arrangements with that creditor to keep the collateral. Otherwise, the secured creditor is going to have the authority to take back the collateral through repossession or foreclosure. Additionally, you will need to continue producing payments on secured loans after bankruptcy, should you keep your collateral. Quite simply, bankruptcy doesn't discharge secured loans.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is actually a structured repayment schedule created underneath the court’s supervision that permits you to repay unsecured creditors over three to five years. Additionally, it enables you to compensate for secured loans with the three to five year plan to be able to keep collateral for instance a house or perhaps a car. If you make all of the plan payments for the required period of time, any remaining balance on your unsecured debts is usually discharged. Secured loans must continue being paid, along with any catch up payments, so as to keep the collateral. The size of the chapter 13 strategy is determined primarily because of your level of income in the months prior to bankruptcy as well as your monthly expenses.
Means Test
The Means Test is actually a calculation which is used to ascertain if you're able to file under chapter 7, or if you are going to be instructed to file under chapter 13. In case your annual earnings are over a specific amount, which varies by state and household size, the bankruptcy code can make you file under chapter 13 so as to a minimum of partially repay your lenders with time. The Means Test involves many variables and it is an essential initial step in determining the best way to take care of your case. Typically, if a person is your spouse, or maybe someone lives in your home and is financially helped by you, that person is a member of your home. “A household for means test purposes involves a debtor, those financially supported by the debtor, and the debtor’s spouse in a joint case if she does not otherwise rely on the debtor for support.” In re Bruyn, 2012 Bankr. LEXIS 775, at *16 (Bankr. D. Idaho, Feb., 9, 2012) (citing 11 USC §707(b)(2)(A)(ii)(I)).
How quickly am I allowed to file for bankruptcy again?
If you happen to get a discharge in bankruptcy, what the law states requires you to definitely wait a particular stretch of time before you acquire a discharge in a subsequent bankruptcy.
The wait times are from the date of filing to the date of filing and therefore are the following:
Chapter 7 to Chapter 7 - 8 years
Chapter 13 to Chapter 7 - 6 years
Chapter 7 to Chapter 13 - 4 years
Chapter 13 to Chapter 13 - 2 years
