I AM OVERWHELMED IN DEBT. SHOULD I FILE A CHAPTER 13 OR CHAPTER 7?
Steven N. Taieb, Esquire has always encouraged his clients to take a positive view and believe things will improve. Thus, if somebody is behind on their mortgage or their home is going to sheriff sale, Mr. Taieb always will encourage the client to try to save the home. It is his philosophy that if you have the ability to reorganize then you should go that route. The worst case scenario is if somebody is not successful in saving their home or other property such as a vehicle, then there are options to modify the plan or convert or switch over to a Chapter 7 to get a fresh start.
Unless someone had a prior Chapter 7 within the last 8 years of a Chapter 13 discharge where the case was filed within the last 6 years with less than 70% paid to unsecured creditors, then they could not convert to Chapter 7. However, most clients always have the opportunity to try to save their property, which is encouraged since the goal of the bankruptcy code is to help honest people get a fresh start and/or save their property.
In certain instances, it may make no sense to reorganize under Chapter 13 since your property is so underwater and you just want to get a fresh start. However, one mistake that clients make all the time is to vacate the premises. If you don’t want to keep the home, then stay there until the home goes to foreclosure. This will allow you to save up money for another property and also protect the property from being vacant. When a property is vacant, all types of problems and vandalism can occur. Thus, it is foolish to vacate your home until the home is extremely close to the date of foreclosure sale.
Thus, you should always try to save your home unless economically it makes absolutely no sense and then you can either modify the plan or move to get a fresh start in Chapter 7.
If you have any questions concerning this matter or any other matter contact TAIEBLAW at 856-235-4994 or visit our website at TAIEBLAW.COM.
Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for over 33 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.
If you have any questions concerning this matter or any other matter contact TAIEBLAW at 856-235-4994.
Steven N. Taieb, Esq. is here to help you and is a South Jersey Bankruptcy Attorney who has helped over 7000 people with their financial problems for the past 33 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.
We are more than happy to discuss all your options and to see if bankruptcy is the best option for you.