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The great majority of personal Bankruptcies proceed under
either Chapter 7 or Chapter 13 of Title 11 of the United States
Code. Under either of these types of Bankruptcy proceedings,
the moment your Bankruptcy Petition is filed you are given
immediate debt relief and protected by the "automatic
stay", which prohibits your creditors from attempting
to collect their debt, including taking legal action, garnishment
of wages, foreclosure or repossessions of property or eviction.
CHAPTER 13
Chapter 13 Bankruptcy, also known as "reorganization
or as the "wage-earner plan", allows a person to
pay off debts under an installment payment plan administered
by a Court-appointed Trustee. Chapter 13 is most helpful to
you if you are behind in payments on a house, a car or other
property that is subject to foreclosure or repossession.
In a Chapter 13 proceeding, you submit for the Court's approval
a three to five year plan and budget under which a certain
repaying your creditors. Once all of these payments have been
made, most of your debt will be discharged. This plan will
allow you to pay off past due mortgage payments on your home
at a rate you can afford. This plan also allows you to cure
defaults on auto loans, taxes and to certain other debts,
and can either reduce or eliminate any of your other debts,
such as credit card debt, medical bills, personal loans, utility
bills, etc. During this repayment period, your creditors are
prohibited from starting or continuing any collection action,
and any adverse actions directed against you and your property
must immediately stop!
In order to qualify for Chapter 1 relief, you must have "regular
income", which may be from a Salary, Commission, Rents,
Pension, Alimony, Child Support, Social Security, Unemployment
Compensation or Public Assistance.
CHAPTER 7
Chapter 7 Bankruptcy, also known as "Straight Bankruptcy"
or "liquidation", involves a possible Court-administered
sale of any of the debtor's property that is not exempt. If
you are not interested in keeping your property, a Chapter
7 would enable you to eliminate any remaining balance that
is incurred after the sale of your home by your mortgage company,
along with any of your bills, such as credit card debt, personal
loans, medical bills, or even overdue utility bills. Under
this proceeding, you pay nothing to these creditors, giving
you a fresh financial start.
CHAPTER 11 AND 12
Chapter 11, although commonly used in connection with business
reorganizations, is available in some cases for individual
debtors will large amounts of debt and in specialized circumstances
Chapter 12 is similar to Chapter 13 but is reserved for "family
farmers".
Call us today to schedule your free
personal & confidential consultation!
Get rid of BILLS! Get rid of BILL COLLECTORS!! Get
a FRESH Financial Start!!
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