You canвЂ™t afford to pay all of your bills, and you are contemplating bankruptcy, you need to be aware of how these benefits are treated in bankruptcy if you receive Social Security benefits (SS), or Social Security Disability Insurance benefits (SSDI. But whether it is in your best interest before we discuss how these benefits are treated you should consider whether bankruptcy is even necessary in your situation, or. For you, it is important that you understand the different bankruptcy options before you determine if bankruptcy is right.
There are 2 common bankruptcies for customers, Chapter 7 and Chapter 13. A Chapter 7 bankruptcy is usually known as a вЂњFresh StartвЂќ bankruptcy given that it discharges (wipes out) many forms of personal debt within about ninety days of filing bankruptcy (there are many exceptions to discharge, including many fees, alimony/maintenance, son or daughter help, student education loans, and most federal government debts and fines). A lot of people whose only income source is SS and SSDI advantages, effortlessly be eligible for a Chapter 7 bankruptcy. Luckily, this is certainly usually the cheapest, fastest, simplest regarding the two bankruptcy choices.
A Chapter 13 bankruptcy is usually described as a вЂњWage EarnerвЂќ bankruptcy. A Chapter 13 is normally a more difficult, longer, higher priced bankruptcy than a Chapter 7. you will be required to file a вЂњPlanвЂќ with the court, which proposes how you will pay back some, or all, of your debt, and how long you will take to pay that debt back if you file a Chapter 13 bankruptcy. Federal legislation calls for you are in a Chapter 13 bankruptcy for at the least three years, and no more than 60 months. As a result of this time requirement, if you should be eligible to discharge all of your debts, that’ll not occur for 36 to 60 months. The master plan which you must have enough income to pay all of your necessary monthly expenses, as well as your monthly Plan payment that you propose to the court must be approved by the court, and one of the criteria necessary to get approval of your Plan is.