Should i declare bankruptcy calculator

Health, Disability, or Term Life Insurance You can deduct the actual cost of your medical, disability , or term life insurance coverage on the means test. Mortgage, Car Loan, and Other Secured Debt Payments If your average monthly mortgage or car loan payment is greater than the IRS standard housing or car ownership allowance, you can deduct the higher amount on the means test.

Payments Required Pursuant to Court Order If you have to make any court-ordered payments such as alimony or child support , you can deduct those amounts on the means test.

Childcare Expenses If you have expenses related to the care of your children for day care, nursery, preschool, or babysitting, you can use them on the means test to reduce your disposable income. Out-of-Pocket Health Care Expenses If you have health care expenses not covered by insurance that exceed the IRS national standard allowance, you can deduct them on the means test. Educational Expenses Required for Employment or a Disabled Child You can deduct your educational expenses that are required as a condition of your employment or needed for your physically or mentally disabled child.

Continuing Charitable Contributions If you have been making regular charitable contributions prior to filing your case and you expect to continue, you can deduct them as an expense. Continuing Contributions for the Care of a Chronically Ill, Elderly, or Disabled Family Member You can deduct your continued contributions to the care of a chronically ill, elderly, or disabled member of your household or family on the means test.

Other Expenses Necessary For Your Health and Welfare If you have any additional expenses needed to maintain you and your family's health and welfare, you may be able to deduct them on the means test. Get Professional Help. Zip Code. How It Works Briefly tell us about your case Provide your contact information Choose attorneys to contact you. Talk to a Bankruptcy Lawyer Need professional help? Oregon Bankruptcy Means Test. Pennsylvania Bankruptcy Means Test. Rhode Island Bankruptcy Means Test.

South Carolina Bankruptcy Means Test. South Dakota Bankruptcy Means Test. Tennessee Bankruptcy Means Test. Texas Bankruptcy Means Test. Utah Bankruptcy Means Test. Virginia Bankruptcy Means Test. Vermont Bankruptcy Means Test. Washington Bankruptcy Means Test. Wisconsin Bankruptcy Means Test. West Virginia Bankruptcy Means Test. Wyoming Bankruptcy Means Test. One of the most common questions is, "What happens to my home or vehicle if I own a significant amount of equity in that asset? In many cases, some home equity is protected under exemptions.

In this instance, you should check how much equity your state allows you to exempt here. We also have 2 other robust articles that deal with how to keep your house and how to keep your vehicle in bankruptcy using exemptions. If you are above the exemptions or do not qualify for Chapter 7, you may look to restructure your debts and make the payments through a Chapter 13 Bankruptcy. Now that we understand how we qualify for a Chapter 7 bankruptcy , let's get into the details of how a Chapter 7 bankruptcy works.

Chapter 7 bankruptcy is often a faster form of debt relief. Unlike filing for Chapter 13, it does not involve submitting a repayment plan which can be estimated through a Chapter 13 Payment Calculator but instead involves the gathering and selling of non-exempt assets in order to pay creditors, through a liquidation process. However, the debtor is allowed to keep their exempt assets in accordance with the Bankruptcy Code. Typically however going through with a Chapter 7 bankruptcy guarantees a loss in property.

Individuals, partnerships, corporations, and business entities are all eligible to qualify for Chapter 7 bankruptcy. However, there are two specific cases in which individuals cannot file for any form of bankruptcy. The other case is if in the days prior to filing the debtor has not sought approved credit counseling. Additionally, one of the purposes of bankruptcy is to allow individual debtors to have a new start by discharging their debts and removing the responsibility of those debts.

Thus with Chapter 7 specifically, this removal of debts can only be given to individuals, not corporations or business entities. To begin the Chapter 7 bankruptcy process , the first step is for the debtor to file a petition with the bankruptcy court nearest to them or their place of business. They must also submit a variety of personal finance documents to the court, such as statements in regards to financial affairs and unexpired leases.

Additionally, a copy of their tax return from the recent tax year and any returns during the duration of the case are to be presented to the assigned case trustee. For individuals specifically, there are additional documents to file. This includes a certificate of credit counseling, a copy of any debt repayment plan from credit counseling, and proof of employer payment from 60 days prior to filing the complete list of documents required here.

Before filing, a variety of fees for the filing process must be paid to the bankruptcy court. If needed, individuals debtors can pay these in up to four installments, though there are exceptions to that limit. In order to have completed the Official Bankruptcy Forms, debtors must provide the following information:.

Married individuals, regardless of who is the one filing, must include this information for their spouse as well. This is only done so that the bankruptcy court can properly evaluate the financial situation of the household. You may submit a schedule of properties from which you are exempt; these corresponding properties are determined and protected by federal or state bankruptcy laws.

To know what is exempt in your state, it is best to contact a bankruptcy attorney. When filing for Chapter 7, there are a few things to remember. The action of filing will automatically place a stop on most creditors and collection agencies. When someone files, a bankruptcy clerk will give notice to all creditors provided by the debtor of their filing.

Additionally, between 21 and 40 days after filing, a meeting will be held by the case trustee between the debtor who will be under oath and the creditor.

During this meeting, the case trustee and creditors will ask questions, in which cooperation is key. Things such as financial documents may be requested. One of the goals of the meeting is to ensure that the debtor is fully aware of the process and results of Chapter 7 as well as the alternatives. The Bankruptcy Code does allow for Chapter 7 bankruptcy cases to be converted to Chapter 11, 12, 13 as long as they are still eligible.

A Chapter 7 discharge only applies to individuals filing for Chapter 7. When granted Chapter 7 discharge, responsibility for your debts is removed and creditors can no longer collect take action towards your debt. According to the United States Courts, apart from the exceptions, individuals receive this discharge 99 percent of the time. This usually occurs within 60 to 90 days after the first meeting set with creditors. Concerning the probability of being denied a discharge, the chances are few and far between.

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How it works. Step 1. Step 2. If you pass the bankruptcy means test. If you fail the means test. Next steps. On a similar note Dive even deeper in Personal Finance. Arrears on other home loans or lines of credit. Balance on car loan or FMV for a cramdown. Balance on a loan secured by personal property or the balance of a rental real estate loan you plan to cram down use FMV for a cramdown—see link above.

Car loan arrears. Arrears on other secured loans. Alimony and child support arrears. Tax debts. Total amount of claim for death or personal injury arising out of your driving under the influence or fraud judgment. Total amount of other priority debts. Courts bankruptcy forms page for a complete list.