Bankruptcy attorneys often get questions from their clients like, “Why is my bankruptcy so different from my friend’s?” The question tends to arise when it seems that a bankruptcy isn’t going the same route as a friend or family member’s bankruptcy. Maybe it’s taking longer to resolve or it feels that your debts are being handled differently. Don’t worry. It’s common to feel this way. We’ll help you understand why bankruptcy cases can vary so much.
If the Details Seem the Same, Why is My Case So Different?
At first glance, it might seem that you have a very similar situation to one of your friends or a member of your family. But when you start looking at the details, each bankruptcy filing can be quite different from one another. Are you 100% sure that your income and debts are exactly the same as the other person’s? That’s pretty unlikely. Do you have special circumstances to consider, like child support, back taxes, student loans or pending lawsuits? Are you trying to keep your house or your car? Each of these factors has an impact on your bankruptcy.
Why Does My Income Matter?
Your income is a big part of what makes your situation unique and it will be a factor in whether you choose Chapter 13 or Chapter 7 bankruptcy. You can’t choose Chapter 7 if your monthly income during the six months prior to filling is more than your state’s median income, or if you fail the “means test” that examines your income. In a broader sense, your income is used to establish the amount of your disposable income, which affects how your debts are handled in a bankruptcy. Even a small difference between your income and a friend’s or family member’s could mean your bankruptcy cases will be treated very differently.
Will My Bankruptcy Case Take Longer Than Theirs?
It is definitely possible that your bankruptcy case will take more or less time than someone you know. A Chapter 7 bankruptcy can be resolved in as few as three to four months. A Chapter 13 bankruptcy usually takes three to five years. The time frame can also be impacted by foreclosures, back taxes, asset issues, and or whether your creditors object to the discharge of their debt in your bankruptcy. Try not to judge the success of your bankruptcy plan by the time it takes. The goal is to get you the best result possible. Sometimes it takes time to make it all happen.
Someone Is Giving Me Advice That’s Different Than My Attorney’s – What Should I Do?
Sometimes a client will tell us that their friend or family member is giving them different advice than their bankruptcy attorney. Beware of bad advice from loved ones. While they may have the best intentions at heart, they can easily steer you in the wrong direction. They likely don’t know the law and how it applies to your unique situation. You can trust your bankruptcy attorney to offer you the best legal advice. Their number one job is to be your advocate. Rely on your bankruptcy attorney to help you find the best path forward, even if it’s different from someone else you know.
Sawin & Shea LLC – Indianapolis Bankruptcy Attorneys
Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea LLC can help you get rid of the overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 or send an email for a free consultation. We are ready to help.
Video Transcript
A common question we get asked all the time is “Why is my bankruptcy case different from my friend’s or family’s cases?” Well, the basic reason for that is their facts are different.
Oftentimes, people are trying to accomplish different goals in their bankruptcy. Everyone is trying to get rid of their credit cards, medical bills, personal loans, that’s pretty standard.
But the fact patterns for each case are very different. Some people are trying to save a house or a car, or protect assets that they wish to keep, or some families have higher incomes that are required to repay some of their debts – because of their income level.
So each case on its own is fundamentally different and will cause a great variance in the way the case will proceed. So unless somebody’s case is exactly the same and you know all the details about their case, there is no way that any case will be exactly the same.
To get real answers about how your case should proceed, you just need to talk to experienced bankruptcy attorneys like our office, and we can walk you through the process and at least explain to you all of your options so that you can understand fully how you should proceed and what will better suit your needs.
