There are different types of bankruptcy available to individual consumers. Most individuals file either a Chapter 13 bankruptcy or a Chapter 7. The relief available under these chapters is very different, and the best option for you will depend on your particular circumstances and goals.
Chapter 13 is sometimes referred to as a repayment plan. In a Chapter 13, you make a proposal to the Court and to your creditors as to how your debts will be paid by you over the next thirty-six to sixty months. In a typical Chapter 13, priority debt such as taxes, and secured debts, such as mortgage arrears, are paid in full over the life of the plan. Unsecured debts, such as credit cards and medical bills, may be paid only a fraction of what is owed.
A Chapter 13 may be the right choice for you if you are facing foreclosure and wish to keep your home, if you are trying to protect someone who has co-signed for you, or if you have property that may be lost if you file a Chapter 7. A Chapter 13 may also be the best option if for any reason you do not qualify to file a Chapter 7.
Schedule a free consultation today to find out if a Chapter 13 may be right for you.
Chapter 7 is the most common kind of consumer bankruptcy. A typical Chapter bankruptcy takes about 90 days to complete from the day the case is filed with the Court . A Chapter 7 allows a fresh start to consumers by discharging most unsecured debts such as credit cards and medical bills. In most Chapter 7 cases, consumers can keep their car loans and house loans while eliminating other crippling debt.
Schedule a free consultation today to find out if Chapter 7 may be a solution for you.
Foreclosure, Repossession and Garnishment
The filing of bankruptcy proceeding under wither Chapter 7 or Chapter 13 will immediately stop a creditor from pursuing any collection actions, including foreclosure, repossession, and garnishment of wages and/or bank accounts.