What is the Difference between Chapter 7 and Chapter 13 Bankruptcy?
When you file Chapter 7, you can keep all your assets, and you become free from your debts, with regards to specific exemptions.
When you file Chapter 13, you work out a budget and pay monthly what you can to the trustee. It usually lasts for three years and the trustee will distribute your payments to your creditors equally.
What bills will I still have to pay after filing Bankruptcy?
You will have to pay your recent taxes, student loans, and all secured debts on property you want to keep. There are a few other exceptions, such as child support and debts based on fraud.
Will I lose my house and car?
No. If you do want to keep the car or house, just keep the payments current.
If you do not want to keep it and you owe on your house or car, you may return it to the lender and you will no longer be required to make any more payments.
Who can file for Bankruptcy?
You have to first meet a Means Test. Please call for details.
If you either owe more money than all of your property is worth, or if you cannot pay your bills when they come due, you qualify to file for bankruptcy.
If nothing else works, bankruptcy can give you a fresh start. It will appear as a dark mark on your credit, but it will release debt. With a reduction of payments, you will be able to work more easily on a cash basis or even start to save money.