Chapter 7 is commonly know as a “straight" bankruptcy, where debts are discharged and do not need to be paid back.
Your credit card debt, medical bills, past due utility bills, and some other bills are typically discharged and you do not need to pay them back.
You typically cannot discharge student loans, alimony, child support, criminal fines, and most taxes.
The vast majority of bankruptcy filers qualify for Chapter 7 with very little extra effort! Please contact us for a Free Consultation.
Chapter 13 Bankruptcy is also known as a "reorganization" bankruptcy.
A re-payment plan is created that tells the court how you plan to repay debts following the bankruptcy laws.
For a 5-year repayment period, payments are made to the bankruptcy trustee, who then pays your creditors.
Chapter 13 allows you to get caught up on mortgages or car loans without the threat of foreclosure or repossession.
All of your property is protected as long as you pay on time and keep necessary insurance.
We can discuss whether Chapter 13 is right for you during your Free Consultation.
Compares average household income for the past 6 months with the state median income.
If you make more than the state median income, your monthly budget is calculated using IRS approved expenses, not your actual expenses.
There are many more details that we can help you with. Please contact us for a Free Consultation.