Bankruptcy

The Means Test: Do I make too much money to qualify for Chapter 7?

If you make too much money, you may not qualify for Chapter 7 bankruptcy, forcing you to file Chapter 13 and make monthly payments for three to five years. But even if you make too much money, an experienced Arizona bankruptcy lawyer may still be able to help you qualify for a Chapter 7 by performing a complicated analysis called the Means Test.

What happens to my wages in bankruptcy?

An Arizona bankruptcy lawyer will advise that a debtor may keep all wages received for work the debtor performs after the bankruptcy filing date. However, a debtor may have to pay to the bankruptcy trustee 25% of wages, commissions or accounts receivables that were earned but unpaid as of the bankruptcy filing date.

When Can I Get Another Home Loan?

A common question I get is how long must a person wait after a foreclosure, short sale or bankruptcy before that person will qualify for another home loan. Although an Arizona real estate lawyer or Arizona bankruptcy lawyer is not a “credit expert”, Fannie Mae has established a number of different waiting periods for so called “derogatory credit events”.

Can I keep my car in bankruptcy by reaffirming the loan? Usually, but there may be consequences.

Most debtors can keep their vehicles when they file bankruptcy. A complication arises when a debtor has a vehicle loan. A competent Arizona bankruptcy lawyer will advise that to retain the car, the debtor may have to stick his neck on the line and reaffirm the car loan, making the bankruptcy null and void with respect to a huge debt. But there may be some alternatives.

Tidbits about credit scores and credit reports

A person facing foreclosure or bankruptcy is understandably concerned about how such decisions impact a person’s credit. The reality is that no one knows for sure how these credit scores are computed. An Arizona bankruptcy lawyer or foreclosure lawyer may be able to provide some tips and tricks that a person can use to minimize credit damage.