What are the requirements for a Chapter 7 versus a Chapter 13?
Question Details:
I currently make 65K per year and I have 330K in debt. I own a home but have recently separated from my wife and therefore pay rent at another location. My wife lives in the home I own and we are both on the deed with 100k in equity for that home. I will continue to pay the 1st and 2nd mortgage on that home that my wife and daughter live in. I have no other asset except a car which is paid for. Do I make too much for Chapter 7 or if I have to file for a Chapter 13? Will I still be able to keep the house that my wife lives in? Should I even file?
There is no way to answer your question without going through a full means test analysis, which can only be done after a comprehensive consultation, obtaining all relevant information. You are clearly over the median income for your state, but it's possible (albeit doubtful) that the mortgage payment you have may provide sufficient deductions to qualify you.
Your alternative is to file a Ch. 13, but if your total unsecured debt is over $336,000, then you would not be eligible.
To see more on Chapter 7, please visit http://www.bklaw.com/chapter7/
For more on Chapter 13, please visit http://www.bklaw.com/chapter13/
Here is another link that I think you may find to be useful: http://www.uscourts.gov/bankruptcycourts/bankruptcybasics.html
It will provide basic information on different aspects of the federal bankruptcy laws. It also provides individuals who may be considering bankruptcy with a basic explanation of the different chapters under which a bankruptcy case may be filed and to answer some of the most commonly asked questions about the bankruptcy process. There are also forms provided, such as the means test. This will give you a better idea of the eligibility of your particular case.
