Choose What Chapter of Bankruptcy Is Best for You
Transcript:
Hi, I'm Matt McArthur, bankruptcy attorney at Clear Counsel Law Group. The topic I'd like to discuss today stems from a phone call that I recently had from a man who called in and was very upset because he felt like he was being forced to do a bankruptcy that he didn't want to do.
Now the question I would like to address from that conversation I had with this man is whether or not you can be forced into a bankruptcy chapter that you don't want to do. I'm going to start by answering this by giving examples of scenarios where you're unable to do a certain type of chapter.
There are certain requirements to be able to fit into any given chapter of bankruptcy.
Chapter 7 Bankruptcy
First, ch. seven bankruptcy. There are income requirements for ch. seven bankruptcy.
If you make too much money based upon your household size, you could be required to choose a different chapter of bankruptcy or dismiss your case. They simply don't allow you to do a ch. seven bankruptcy, in other words, if you don't meet certain requirements.
They won't ever force you to do a ch. 13 against your will if you filed the ch. seven and it turns out that you are ineligible to do that chapter of bankruptcy.
Chapter 13 Bankruptcy
An example of ch. 13 bankruptcy where you may be forced out of that chapter is if you filed the ch. 13 bankruptcy and, for example, you have too much debt.
Too much unsecured debt over the allowed amount can force you out of a ch. 13 bankruptcy because you would be ineligible for a ch. 13 discharge, which essentially makes the ch. 13 kind of pointless.
At that point what would normally happen is you'll be given the choice of dismissing the ch. 13 case or converting to another chapter, ch. seven or possibly ch. 11.
In either scenario, you're not going to be forced to do something that you didn't want to do, but your options will be limited.
It's very important when you're considering filing for ch. seven bankruptcy or 13 bankruptcy that you meet with a qualified attorney that's going to look at your situation, analyze what's going on, and determine whether you're able to file for the chapter of bankruptcy that you want to file for, or whether another chapter would be more appropriate for you.
If you have any questions about the type of bankruptcy, please come and see me, Matt McArthur, bankruptcy attorney at Clear Counsel Law Group.
I have a lot of experience in dealing with my clients' situations, advising them on which course is best for them, helping them achieve their goals so that they can best address their financial needs.
Until next time, I hope to speak with you soon on your path towards a fresh start.
Take care.
