Comparison of Chapter 7 and Chapter 13
Assumptions:
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Total Unsecured Debt of $50,000
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Individual Chapter 13 Case will pay 100% of Unsecured Debt
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Chapter 13 Plan will last 36 Months
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No Equity in House or Cars which cannot be exempted
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House Payment and Car Payments to be paid by Debtor Monthly (no arrearage owed)
(attorney fees shown below are the average fees charged but could be higher in complex cases)
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Considerations
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Chapter 13
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Chapter 7
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Bankruptcy Court Filing Fee
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$274.00
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$299.00
|
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Cost for required Credit Counseling
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$34.00
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$34.00
|
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Cost for required Debtor Education
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$8.00
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$8.00
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Cost of required Credit Report ($50 for Married Couple $30 for an individual)
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$30.00
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$30.00
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Discharge received
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36 months
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120 days
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Years Bankruptcy will be reported on Credit Report
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7 years
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7 to 10 years
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Monthly Payment to Trustee (payment to be made for 36 months)
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$1,653.10
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$0.00
|
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Attorney Fee
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$2750.00
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$1229.00
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Total Costs
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$56,205.44
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$1,600.00
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Other interesting facts: During the course of a Chapter 13 case, a Debtor cannot incur new debt without Court approval. A Chapter 13 Debtor must commit all of his disposable income to the repayment of his debt during the course of the Chapter 13 case. In a Chapter 7 case, the Court does not supervise a Debtor’s post filing activities. In addition, all monies earned by a Debtor after the case is filed belong to Debtor free of the dischargeable claims of creditors. Generally speaking, most mortgage lenders will consider a Debtor for a mortgage 24 months after the entry of their Chapter 7 discharge.
Our Birmingham and Tuscaloosa bankruptcy lawyers can explain all of your options to you. You will not be pressured to hire Dionne & Dionne, or file a bankruptcy case. Our Birmingham and Tuscaloosa bankruptcy lawyers will explain your options to you for free.
How to Get Help and Get Out of Debt
When you are ready to get out from under your crushing debt, give Don or Melinda Dionne a call at 205-349-5911 (Tuscaloosa) or 205-453-1012 (Birmingham) or click here. When you call, tell our assistant, Ginny, that you are a website reader and she will set you up with a free, no obligation, consultation to see how Don and Melinda can help you start living again.
Tuscaloosa Office: 9217 Old Greensboro Road, Tuscaloosa, Alabama 35405 (205) 349-5911; Birmingham Office: 4 Office Park Circle, Suite 214, Birmingham, Alabama 35223 (205) 453-1012. |