Does Chapter 13 Make Sense for me? 31 Answers as of July 10, 2013

The 1 hour photo I have had for the past twenty years was not profitable for the last 2 years and I was paying out of my own pocket. I finally decided to close it but still have so much debt because of it. The machinery I owned is worth $5k and I also have a home and a car. I don't have a salary anymore, does chapter 13 make more sense than chapter 7?

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Mauritz Van Niekerk, Attorneys at Law
Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
No chapter 13 is for people with regular income.
Answer Applies to: New York
Replied: 7/24/2011
Guerrieri & Cox
Guerrieri & Cox | Michael A. Cox
Chapter 7 may be the route for you depending on how much your house and car are worth and whether money is owed on your house and car. A consultation is necessary for you to properly make the choice between Chapter 7 or 13 so that all of your circumstances are taken into consideration.
Answer Applies to: Ohio
Replied: 7/22/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
Chapter 13 is for debtors with steady income. If you are "unemployed" regardless of how you got there, you would file a Chapter 7.
Answer Applies to: California
Replied: 7/21/2011
Apple Law Firm PLLC
Apple Law Firm PLLC | David Goldman
With no income, a chapter 7 may make more sense.
Answer Applies to: Florida
Replied: 7/21/2011
Law Office of J. Thomas Black, P.C.
Law Office of J. Thomas Black, P.C. | J. Thomas Black
Most of my clients that have had a small business failure choose to file chapter 7 instead of chapter 13. But that does not mean that is good advice for you. There is not nearly enough information in your question to be able to advise you. You should sit down with an experienced bankruptcy attorney and review all of your circumstances.
Answer Applies to: Texas
Replied: 7/21/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    It will depend on whether or not you have enough income to make monthly payments on a plan. An attorney will evaluate both options for you and make recommendations for you.
    Answer Applies to: New Hampshire
    Replied: 7/21/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    I would advise that you look into a chapter 7 as you have no regular income.
    Answer Applies to: California
    Replied: 7/21/2011
    Law Office of Jackie Robert Geller
    Law Office of Jackie Robert Geller | Jackie Robert Geller
    To file a Chapter 13 case you need a regular source of income. You said that you don't have a salary anymore so that may prevent the filing of a 13 right now.
    Answer Applies to: California
    Replied: 7/21/2011
    Law Office of Abel L. Pierre
    Law Office of Abel L. Pierre | Abel L. Pierre, Esq.
    The answer to your questions depends on where you live. If you live within the five boroughs of New York City, or Rockland, Westchester, Putnam, Nassau, Suffolk Counties you can keep your home if you have up to $150K worth of equity in your home. Meaning if the value of your home exceeds what you owe on it by $150k or less you can file Chapter 7. If you are filing jointly with your spouse that amount is double. For the rest of the state the limit is $75k A
    Answer Applies to: New York
    Replied: 7/21/2011
    Engberg Law Office
    Engberg Law Office | Harry A. Engberg
    You have to have a regular income to file a Chapter 13. A chapter 7 sounds better.
    Answer Applies to: South Dakota
    Replied: 7/21/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    You did not tell me there was any equity in the house or car. Assuming all the equity added up comes to around 23,000.00 you could file a Ch7. If the equity is significant, see a lawyer.
    Answer Applies to: California
    Replied: 7/21/2011
    Lake Forest Bankruptcy
    Lake Forest Bankruptcy | Anerio V. Altman, Esq.
    Chapter 13 makes sense where you have sufficient income to pay off some of your debts over a 3-5 year period. If you are running a hard negative on your finances, where even if we took away credit card payments, you were still running in the red, then a 13 is not a solution for you. You are probably looking at filing a Chapter 7. If you have equity in your home and car then those may be lost in the Chapter 7. Consult an attorney. Your answer will be based on the value of your property and your income in the last six months.
    Answer Applies to: California
    Replied: 7/21/2011
    Tucker Legal Clinic
    Tucker Legal Clinic | Samuel Tucker
    You most likely would want to file a Ch7 unless you are behind on your home mortgage, but you need a regular income to formulate a Ch13 plan.
    Answer Applies to: Mississippi
    Replied: 7/21/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Does the home have equity? How much? Same question for the car. If no, I would say Chapter 13 makes no sense whatsoever, it's a repayment plan and how do you propose a repayment plan with no salary? Its impossible, and more importantly, why would you want to be on a partial repayment plan if you could discharge everything in its entirety in a Chapter 7?
    Answer Applies to: California
    Replied: 7/21/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Any lawyer who answers your question with the little facts you provide is not worth listening to. Go see a local bankruptcy lawyer for a consultation (usually free). A forum like this is for brief information/facts about bankruptcy and an evaluation of a case and advice as to what you should do requires a face-to-face consultation with a lawyer.
    Answer Applies to: California
    Replied: 7/21/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    There's not enough information to answer that question. If you have too much income for a Chapter 7 case, or assets you cannot fully exempt, then a Chapter 13 may be your best option. The only way to determine is to schedule a consultation with a bankruptcy attorney to go over all the relevant facts.
    Answer Applies to: California
    Replied: 7/21/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    None of what you posted determines what chapter you may qualify for. As a general rule, the numbers that make a 13 work prevent a 7, and vice versa, so you usually do NOT have a choice of chapters. No one should consider or file bankruptcy without a lawyer, and when there has been a business you have a more complex than average case. To make an initial determination for my clients I look over dozens of pages of detailed financial information. Without your numbers there is no way to answer you.
    Answer Applies to: Georgia
    Replied: 7/21/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    You don't qualify for a CH. 13 unless you have income!! Sounds like you don't
    Answer Applies to: California
    Replied: 7/21/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    There are several considerations as to whether chapter 13 or chapter 7 is better. Mostly chapter 13 is used when there is an ongoing business, high income and/or non-exempt assets. Chapter 7 is used when income is low, assets are minimal and where there is no operating business. Consult a bankruptcy attorney for the specific factors in your case.
    Answer Applies to: California
    Replied: 7/21/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    You have to have some sort of steady income (wages, pension, social security, etc) to be able to file and proceed in a Chapter 13 plan.
    Answer Applies to: Indiana
    Replied: 7/21/2011
    Law Offices of Michael J. Berger
    Law Offices of Michael J. Berger | Michael J. Berger
    Regular income that is greater than your monthly expenses is a prerequisite for a Chapter 13. You say that you do not have a salary anymore, and you do not mention having any regular income. Accordingly, a Chapter 7 sounds better for you. Please call me for a free consultation. I will need complete information about your assets, debts, income and expenses to fully diagnose your matter.
    Answer Applies to: California
    Replied: 7/21/2011
    Fears & Nachawati Law Firm
    Fears & Nachawati Law Firm | C. Bryan Fears
    It will depend on your future earnings. If you have no income, you will not be able to pay back creditors in the chapter 13 and therefore a chapter 7 will be your best option.
    Answer Applies to: Texas
    Replied: 7/21/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    The real question is whether you have excess assets you want to keep (if your house has a lot of equity, or if your car is paid off, for example).or if you earn too much to qualify for Ch. 7. Ch. 13 requires that you have regular income. I suspect ch. 7 is better for you. Please feel free to call me if you have questions.
    Answer Applies to: Virginia
    Replied: 7/21/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Go Ch 7. Better for you.
    Answer Applies to: California
    Replied: 7/21/2011
    Melinda Murphy Dionne, PC
    Melinda Murphy Dionne, PC | Melinda Murphy Dionne
    If you have no source of income, you do not qualify to file a Chapter 13 case. Whether a Chapter 7 would help you depends on the amount of equity that you have in your home and car.
    Answer Applies to: Alabama
    Replied: 7/21/2011
    Dan Shay Law
    Dan Shay Law | Daniel Shay
    No, Chapter 7 is the way to go. A Ch13 will not even be possible w/o enough income and a 7 is much faster and easier and effective usually for unsecured non priority debt.
    Answer Applies to: California
    Replied: 7/21/2011
    Eric J. Benzer, Attorney at Law
    Eric J. Benzer, Attorney at Law | Eric Benzer
    Need more info is it ever gonna be profitable?
    Answer Applies to: Maryland
    Replied: 7/10/2013
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