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FACT: It is not a well known fact that when you file bankruptcy the decision as to whether you will be in a Chapter 7 or a Chapter 13 is NOT determined by the attorney who files the paperwork for you, nor by you.
The decision as to whether you will be allowed to declare a 7 and walk away from your obligations, or if you will be required to participate in a Chapter 13 and make payments to the court which will be forwarded to your creditors over a period of years, will be made by the Trustee of the Court.
The Trustee will evaluate your situation and make a decision as to what he/she believes is best given your resources and ability to honor the obligations you made. It is not, nor should it be seen as, a slam dunk to walk away from debts. You need to know this before you file. Bankruptcy can be the solution you need, under certain circumstances. Following my divorce it was the option which allowed me to declare a Chapter 7 and be released from the obligation to pay back a deficiency of $8,000 on a $10,000 can and another $28,000 on a house barely worth 100,000. But it was the trustee who looked at my income and made that choice, not my attorney. Attorneys present recommendations; TRUSTEES MAKE DECISIONS. Clarity is good, it helps you be prepared.
Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.
(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)
The decision as to whether you will be allowed to declare a 7 and walk away from your obligations, or if you will be required to participate in a Chapter 13 and make payments to the court which will be forwarded to your creditors over a period of years, will be made by the Trustee of the Court.
The Trustee will evaluate your situation and make a decision as to what he/she believes is best given your resources and ability to honor the obligations you made. It is not, nor should it be seen as, a slam dunk to walk away from debts. You need to know this before you file. Bankruptcy can be the solution you need, under certain circumstances. Following my divorce it was the option which allowed me to declare a Chapter 7 and be released from the obligation to pay back a deficiency of $8,000 on a $10,000 can and another $28,000 on a house barely worth 100,000. But it was the trustee who looked at my income and made that choice, not my attorney. Attorneys present recommendations; TRUSTEES MAKE DECISIONS. Clarity is good, it helps you be prepared.
Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.
(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)
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