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So often, people find themselves in a financial pickle. A job loss, an illness, a business venture that didn't quite work out, mounting credit card debt, etc....any one of these things can wreak havoc and lead to foreclosures, repossessions, wage garnishments and more. But the good news is that there IS a solution! The United States code offers protection to people in good faith that just need a fresh start.
No! The moment you file bankruptcy, all court proceedings are stopped. This is called the "automatic stay" and includes foreclosures, repossessions, collection matters and more. Depending on which Chapter you are eligible to file, you may be permitted to keep all your personal property.
Chapters 7 and 13 Bankruptcies are consumer bankruptcies and each operate a little bit differently. In each case, a Trustee is appointed by the US Bankruptcy Court that oversees your case from start to finish.
Chapter 7 is also known as a liquidation bankruptcy and is a quick way to a new start for people with limited income or assets. It's faster than a Chapter 13 Bankruptcy. In most cases, people do keep their cars, bank accounts, and other personal property if it is fully exempt, and they will no longer be responsible for their unsecured debts. Contact our office for more information!
Chapter 13 Bankruptcy is also known as a reorganization bankruptcy. It involves making a monthly payment to the Chapter 13 Trustee's Office for a period between 36 to 60 months. Let our office determine whether you qualify for this chapter by examining your monthly household income and expenses and whether a plan is feasible. Chapter 13 can be a very helpful too to ward off foreclosures and allow people to keep their home in addition to getting out of mounting credit card debt. For example. the arrears owed to your mortagage company are placed in the plan and paid monthly as you continue to make regular payments on your mortgage. In addition, your unsecured debts are also paid through the plan, In some cases, even second mortgages and some older tax debt can be discharged through the plan. Although the court cannot change the terms of the mortgage, the plan can help you dig out of debt while remaining in your home.