If Bankruptcy Filing Is the Best Option, Attorney Truman Fully Explains the Process So You Are Informed about both a Chapter 7 and a Chapter 13

They're asking me questions, I'm asking them questions. I'm finding out what their financial situation is. I tell them about the bankruptcy law, and we see if there's a fit. If there's a fit, then we go through and see which one they qualify for.

Your Income Dictates if a Chapter 13 Filing Is the Better Bankruptcy Option

Income is probably one of the main determining factors as far as deciding on a Chapter 13. But they changed the bankruptcy law back in October of 2005. They established median incomes for each geographical area based on household size.

In Ohio, if Your Median Income Is above $52,000, a Chapter 13 Bankruptcy Is Recommended

For example, a two person household in northeast Ohio, the median income is about $52,000 a year. If your total household income is above that, then there's a presumption, just to file a Chapter 13 bankruptcy and pay your creditors back something.

You Will Not Be Paying Your Creditors Back in Full; in a Chapter 13 Filing, They Agree to Settle for a Specified Portion of the Total Debt

People are confused with that. They assume they have to pay back all of it, but that is not the case. Very few of my clients are paying back 100% of their debt. Most of them are paying back somewhere between 10% and 20% of what they owe. If you come in and you're a 20% plan and you have $50,000 credit card debt, you'll be paying back about $10,000.