Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. In Chapter 7 cases, we seek to eliminate (discharge) your debts, while allowing you to keep your assets. The theory behind filing bankruptcy Chapter 7 is to give honest debtors a “fresh start.”
The purpose of Chapter 7 is to obtain a discharge of your existing debts. If, however, you committed certain kinds of improper conduct described in the Bankruptcy Code , the court may deny your discharge. In order to determine if Chapter 7 is right for you, call now.
Bankruptcy Chapter 13 allows individuals with regular income to pay all or part of their debts in installments over time. Chapter 13 helps individuals stop foreclosure as well as set up a plan to pay the mortgage arrears over a 3-5 year term. Furthermore, you pay a percentage of total debt to credit cards through the Chapter 13 plan.
Under Chapter 13, you must file with the court to plan to repay your creditors all or part of the money that you owe them, using your future
earnings. The period allowed by the court to repay your debts may be three to five years, depending on income and other factors.
After completing the payments under your plan, your debts are generally discharged with a few limited exceptions. In order to determine if Chapter 13 is right for you, call now.