Chapter 7 bankruptcy provides immediate relief and may help you eliminate most types of unsecured debt. Debts such as: unsecured debts like credit cards or personal loans; medical bills; judgments resulting from car accidents; and any deficiencies resulting in repossessed vehicles. In addition to eliminating your debt. Those filing Chapter 7 may typically keep all of their personal property as long as they are current on their car and mortgage payments and there is no significant equity in your possessions. A Chapter 7 bankruptcy is ideal for those who are in over their heads and looking for a fresh start. This works well for those looking to keep their home, keep car and personal belongings. In addition to eliminating most unsecured debt, a Chapter 7 bankruptcy will stop creditor harassment, stop wage garnishment and ends most lawsuits. Furthermore, after discharge, a Chapter 7 Bankruptcy can help you rebuild your credit. For more information on Chapter 7 Bankruptcy, click here.
Chapter 13 bankruptcy enables those with regular income to develop a repayment plan for a portion of their debts. Under Chapter 13, debtors propose a repayment plan on which they intend on making installments to creditors over a three to five year period. Depending on the debtor’s current monthly income, will determine whether they are eligible for a 3 year or 5 year period. If the debtor’s monthly income is greater than the state’s applicable median, they must typically repay for a five year term. Those with lower incomes, typically qualify for a three year period. A Chapter 13 may provide an opportunity to save a home from foreclosure. By filing under Chapter 13, individuals can stop foreclosure proceedings potentially curing delinquent mortgage payments over a specified time. Chapter 13 also protects third parties who are liable with the debtor on “consumer debts.” Finally, Chapter 13 acts like a consolidation loan under which the trustee distributes payments to creditors. For more information on Chapter 13 Bankruptcy, click here.
Chapter 11 is a form of bankruptcy that involves the reorganization of a debtor’s business affairs and assets. Chapter 11 is typically filed by corporations required to restructure their debts. Chapter 11 gives debtors a fresh start, subject to satisfactory repayment of its obligations under reorganization plan. Many public corporations tend to try to file bankruptcy under Chapter 11 rather than Chapter 7 because it allows them to still run their businesses and control the bankruptcy process. For more information on Chapter 13 Bankruptcy, click here.
Chapter 7 bankruptcies seem to be the most common. Chapter 7 bankruptcies are liquidation bankruptcies in which debtors must turn over “non-exempt” property to the bankruptcy trustee. Certain property is exempt if it falls within specific categories of assets that debtors are allowed to keep, such as a certain amount of clothing, household items, tools for work, and in some instances, vehicles and the family home. To help you determine which type of bankruptcy is best for you,