Recently on our disability forum a disability recipient asked, “If I have been receiving Supplemental Security Income (SSI) benefits and the Social Security Administration has determined I owe them money for an Supplemental Security Income overpayment can the SSI overpayment be discharged if I file for Chapter 7 bankruptcy protection?”
If you have filed a personal injury claim, car accident claim, or any other type of civil suit you may be expecting a large lawsuit settlement. Unfortunately, it can take years to receive a lawsuit settlement, especially if the case has to be settled in court. So what do you do if you are in financial straits? Should you file bankruptcy now or wait for your lawsuit settlement? What happens if you file bankruptcy now but receive a settlement after the bankruptcy case has closed and you have received your bankruptcy discharge?
Recently on our bankruptcy forum a user asked, “If my home has been sold through auction is there a way that I can get my property back?” Some states allow property owners who have lost their homes in a foreclosure to regain their property through a process known as statutory redemption. State laws vary, which means the amount of time you have to reclaim or redeem the property can vary, as well as the process for redemption.
Both Chapter 11 and Chapter 13 bankruptcy may allow you to modify secured debt contracts, discharge certain unsecured debts that cannot be repaid over the term of the bankruptcy repayment plan, and to keep certain property needed to operate your business. There are some differences between the two bankruptcies, however, which are discussed below.
Filing bankruptcy can be a complicated process, especially if you are trying to file on your own without legal help. Recently on our bankruptcy forum a user asked, “What are the most common mistakes made by bankruptcy filers and what can I do to avoid them?”
Given the increased eligibility requirements for filing Chapter 7 bankruptcy not all filers will have a choice of whether or not to file Chapter 7 or Chapter 13. Recently on our bankruptcy forum a user asked, “I was told that my income was too high to file Chapter 7 bankruptcy. What does this mean and what are my bankruptcy options?”
Chapter 13 bankruptcy may allow you to avoid surrendering your home. For example, assuming you are up to date on your mortgage payments and you continue to pay your mortgage, you can generally keep your home if you file Chapter 13 bankruptcy. What if you are behind on your mortgage payments and owe mortgage arrears? Chapter 13 bankruptcy may also allow you to repay your mortgage arrears within your Chapter 13 bankruptcy repayment plan.
Many debtors have questions about whether filing Chapter 7 bankruptcy is the right choice for them. Recently on our bankruptcy forum a user asked, “If I have I have $6,000 in credit card debt and no income, can I file Chapter 7 bankruptcy?” Although you may be legally allowed to file bankruptcy to discharge $6,000 worth of credit card debt a better question may be whether or not it’s the best option for you. Let’s review some of the issues you should consider prior to filing Chapter 7 bankruptcy.