Starting over with a Chapter 7 Bankruptcy is considered a Fresh Start and gives you a clean slate. Chapter 7 Bankruptcy enables you to eliminate many different kinds of debts, including: credit card debt, medical bills, and certain unsecured loans that are not backed by any form of collateral. You may also be able to eliminate certain tax debts.
Chapter 7 is the most common form of bankruptcy in the United States. In a Chapter 7 Bankruptcy, the individual is allowed to keep certain exempt property.
As soon as you file a Chapter 7 Bankruptcy, your creditors are no longer permitted to contact you or take legal action against you. A Chapter 7 Bankruptcy can stop your wages from being garnished or your bank accounts from being levied.
Most people appreciate the idea of getting a fresh start and stopping creditor harassment, but worry about losing their possessions in bankruptcy. In most cases, we are able to protect your home and car, if not in a Chapter 7 then in a Chapter 13 Bankruptcy.
Chapter 7 Bankruptcy can provide many small businesses with the relief they need.
There is life after bankruptcy! Our law firm will advise you what to expect when you file and give you suggestions on what to do after bankruptcy.
Depending on whether or not you can pass the means test, Chapter 7 could be the best way for you to regain control of your finances. If you do not pass the means test you may consider a Chapter 13 Bankruptcy. To discover what bankruptcy options are available to you, contact us today for a free confidential consultation.
Searching the internet may cause confusion because not all of it is accurate or up-to-date. Bankruptcy laws are complex, and every state has different rules governing exemptions. Family and friends may add to this confusion because every bankruptcy case is unique and your circumstances could be different. Bankruptcy provides many different options. Our experienced bankruptcy attorneys will be happy to discuss how Chapter 7 bankruptcy can assist you.
Chapter 13 Bankruptcy isn't for everyone. A Chapter 7 Bankruptcy offers immediate and complete relief of many oppressive debts. A Chapter 13 Bankruptcy is a form of reorganization or debt consolidation. In Chapter 13 Bankruptcy, you keep your property, but pay back all or a portion of your debts over a three to five-year period.
Usually those who file a Chapter 13 are those who do not pass the means test. The means test is an economical test used to determine whether a debtor has the means to pay his debts. Others who may choose to file a Chapter 13 Bankruptcy include: individuals with extreme debt owed to the IRS that cannot be excluded; individuals trying to stop a foreclosure or repossession quickly; and individuals with large amounts of equity in their home.
The most important part of your Chapter 13 paperwork will be a repayment plan. Your plan will describe in detail how and how much you will pay each of your debts. Your Chapter 13 plan must pay certain debts in full. Priority debts are considered important enough to move them to the head of the bankruptcy repayment line. Priority debts include alimony and child support, wages you owe to employees, and certain tax obligations.The plan must include regular payments on secured debts, such as a home mortgage and a car loan, if you plan to keep that property, as well as repayment of any arrearages.The plan must also demonstrate that any disposable income you have left after making these required payments will go towards repaying your unsecured debts, such as credit card or medical bills. You do not have to repay these debts in full or in some cases even at all. You just have to show that you are putting any remaining income towards repayment.
For complete information about Chapter 13 Bankruptcy, including what happens to your home, car, and debts, contact our law office for a free confidential consultation.
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This Office is a Debt Relief Agency that Provides Representation Under the Bankruptcy Code