Filing Chapter 7 bankruptcy wipes out most types of debt, including credit card debt, medical bills, and personal loans. Your obligation to pay these types of unsecured debt is eliminated when the bankruptcy court grants you a bankruptcy discharge.Jan 1, 2021
If your annual income, as calculated on line 12b, is less than $84,952, you may qualify to file Chapter 7 bankruptcy. If it’s greater than $84,952, you’ll have to continue to Form 122A-2, which we’ll review in the next section. It should be noted that every state has different median income calculations.Nov 20, 2020
In a Chapter 13 bankruptcy, the court will require the borrower to repay debt using a court-structured repayment plan. Payday loans will be treated as any other unsecured debt and may be included in the repayment plan, allowing the debtor to repay creditors over a period of time from future income.
If you owe a PayDay loan, you must include the debt in your Chapter 7 bankruptcy schedules. All debts must be included in a bankruptcy case, regardless of whether the debt may be discharged or not. PayDay loans are unsecured loans. Most unsecured debts are eligible for a discharge in Chapter 7 bankruptcy.Jan 6, 2021