How much, if any, do I need to pay to my creditors?

How much you pay your creditors depends on whether you file for Chapter 7 or Chapter 13 protection. In a Chapter 7 bankruptcy, you pay nothing to your unsecured creditors (You still have to pay creditors who have a security interest in your property). In a Chapter 13 bankruptcy, you pay back what you can based on your income and expenses.

There are many factors governing whether you file under Chapter 7 or Chapter 13. Whether you have the opportunity to strip a mortgage or cram down a debt needs to be reviewed by your attorney.

In the 2005 Bankruptcy Code, the United States Congress determined that households who make more money than the median income must file Chapter 13. Of course, there are complications to the median income calculation which you can discuss with Circle Law.

Circle Law can help you review your financial circumstances and determine whether bankruptcy may be an option for you. Contact Circle Law.