The two most common consumer bankruptcies are Chapter 7 and Chapter 13 bankruptcy. Bankruptcy lawyers handle these types of bankruptcies exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Bankruptcy attorneys will fight to protect your rights and your property. Our bankruptcy attorneys have decades of experience fighting aggressive and annoying creditors. They can help you keep your home, vehicles and other property.
If filing for bankruptcy is an opportunity for a debtor to emerge out of a financial crisis and start afresh, then Chapter 7 of the Bankruptcy Code is the way to achieve this end relatively faster. Under Chapter 7 of the Bankruptcy Code all non-exempt property of the debtor is sold and the proceeds of the same are distributed to the creditors. In most cases where Chapter 7 is brought into force the debtor has no assets to lose, therefore the fresh start takes place relatively faster.
Chapter 7 bankruptcy may eliminate most kinds of unsecured debt. Some examples of unsecured debts Chapter 7 may eliminate are credit cards; medical bills; most personal loans; judgments resulting from car accidents; and deficiencies on repossessed vehicles.
In addition to getting rid of your debt, Chapter 7 allows you to typically keep all of your property. As long as your car and mortgage payments are current, and there is no significant equity in your property, we should have no problem making the arrangements for you to reaffirm the debt. Keep your home, keep your car, keep your personal belongings, but eliminate your debt; that is our goal with Chapter 7. Our attorneys may be able to use Chapter 7 to provide you with many benefits. Read about those benefits below and about other subjects related to Chapter 7 and other forms of bankruptcy. Also known as liquidation (converting assets into money) or a straight or basic bankruptcy, Chapter 7 Bankruptcy is the most common form of bankruptcy filing. This type of bankruptcy filing accounts for as much as 65% of all Consumer Banking filings.
Non-dischargeable debts under Chapter 7 include—
- Alimony and child support
- Condominium or co-op association fees or assessments
- Debts for fines or penalties to governmental units
- Debts for fraud while you were acting in a fiduciary capacity or for embezzlement or larceny
- Debts for judgments in wrongful death or personal injury lawsuits while you were intoxicated
- Debts for willful and malicious injury
- Debts obtained through fraud, false pretenses, or false representation
- Student loans
- Taxes and tax liens
- Unscheduled debts
Chapter 13 Bankruptcy
One very important thing to remember about Chapter 13 bankruptcy is that you must be working or have a consistent source of income for your repayment plan to be approved by the court. Not only must you be able to pay for your monthly living expenses, but you must also be able to make a payment to the court to consolidate your debts.
Debts
that are
generally
consolidated
in a
Chapter
13
bankruptcy
are
mortgage
arrears,
balances
on
vehicle
loans,
student
loans,
credit
card
debts
and
other
unsecured
debts.
All
outstanding
debts
must be
included
in the
Chapter
13
bankruptcy
consolidation.
The one advantage of Chapter 13 over Chapter 7 Bankruptcy is the full discharge option which is not applicable under Chapter 7 filing. For example, if a debtor manages to complete all necessary payments in the plan, he/she is given a full plan discharge. (There are a few exceptions to this case, which your attorney will guide you about if necessary.) Yet another advantage of the Chapter 13 filing is that a repayment can be created even if creditors disagree with it, as long as it is approved by the Court.
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