Many people think that bankruptcy is like giving up. They think that if they turn to this solution, they’re admitting that they failed. This couldn’t be further from the reality. So many people need help at one time or another in their lives. Having to turn to bankruptcy for support is not unusual.
There are different kinds of bankruptcy. While many people think that all bankruptcies result in losing all you’ve worked hard to gain, the truth is that bankruptcy isn’t designed to take away all your assets. Doing that would potentially put you in a worse financial position, and that’s not the goal.
Can you file for bankruptcy if you still earn a high income?
Yes, but it’s unlikely to be a liquidation bankruptcy. Instead, you may want to look into Chapter 13 bankruptcy. Chapter 13 bankruptcy is different than Chapter 7, because it doesn’t require you to sell your assets to pay back creditors. Instead, your goal is to make payments every month for three to five years. After that time, any remaining debts are discharged by the court, so long as they were included in the bankruptcy.
How do you know how long the bankruptcy plan will be?
It depends solely on your income. If you earn less than the state median income, the plan is for only three years. If you earn more, then the plan is for five years. During the program, your creditors are not allowed to pursue collections. They may not start collection activities, either, preventing harassing calls and actions against you.
Chapter 13 bankruptcy is extremely beneficial for people who are worried about losing their homes to foreclosure. During the bankruptcy, the individual needs to pay the mortgage on time, but any delinquent payments may be added to the bankruptcy and paid back over time. This can save your home, so this plan is something to consider if that’s a concern.
As long as you have unsecured debts of less than $394,725 and secured debts of under $1,184,200, then you will be able to qualify for a Chapter 13 bankruptcy in New Hampshire. Your attorney can give you more information on how the bankruptcy can provide you with relief from your debts and help you get back on track. In just a few short years, it is possible to reduce your debts significantly and walk away from the bankruptcy with a positive financial outlook moving forward.
