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File Bankruptcy Chapter 7
Chapter 7 bankruptcy offers a fresh start to people who find themselves buried in credit card debt, medical bills and other unsecured debt. In the bankruptcy, most of those debts are discharged, which means that you’re no longer legally obligated to pay them. It also means that creditors and debt collectors can’t contact you about those debts, report them as late to the credit bureaus or otherwise bother you about them.
Some of the most common types of debt discharged when filing chapter 7 bankruptcy include:
· credit card debt
· medical bills
· past-due rent and utilities
· payday loans
· some tax debt
Immediate Relief from Financial Stress
One of the most powerful aspects of consumer bankruptcy is the automatic stay. In most cases, the automatic stay stops creditor calls, debt collection letters, lawsuits and even wage garnishments as soon as your bankruptcy case is filed. That means that when you get the right help, the pressure could be off in as little as a few days.
The Basics
Chapter 7 bankruptcy is designed to help people crippled by unsecured debt wipe the slate clean and begin again on a more solid footing.
Exemptions vary somewhat from state to state, but they typically include things like:
· clothing
· furniture
· work tools
· a certain amount of equity in your home
· a vehicle up to a certain value
In some states, there is also a “wild card” exemption which allows you to protect some property that might otherwise not be exempt.
File Bankruptcy Chapter 13
Chapter 13 bankruptcy offers a solution for people who have regular income, but are overburdened with debt. A Chapter 13 plan allows you to catch up past-due payments during a three to five year repayment plan. At the end of that period, some remaining unsecured debt may be discharged.
Immediate Relief from Financial Stress
In most Chapter 13 bankruptcy cases (as in most Chapter 7 cases), an automatic stay is entered as soon as the case is filed. The automatic stay is a court order that puts an immediate stop to creditor calls, debt collection letters, law suits and even wage garnishments. When you take action to turn your finances around, the pressure could be off in just a few days.
The Basics
Chapter 13 bankruptcy is designed to give people with high levels of secured debt or valuable property get the breathing room they need to manage their debts and keep their property.
How To File Chapter 13
Just as in a Chapter 7 bankruptcy case, your attorney will prepare petitions and schedules that detail your income, debts and assets for the bankruptcy court. And, the court will appoint a bankruptcy trustee to oversee your case.
Then, you and your bankruptcy attorney will submit a payment plan. The payment plan will allow you to spread your past due balances over a three to five year period, while making current payments as they come due. The plan may or may not require you to pay 100% of your unsecured debt; in many cases, some unsecured debt is discharged.
Your creditors and the trustee will have the opportunity to review the plan and make any objections. Once your plan is approved, you keep your property and make scheduled payments without demanding creditors vying for your dollars or outrageous late charges and other fees inflating your balance and putting you further behind.
The Bankruptcy Discharge
In many Chapter 13 cases, some unsecured debt is discharged, which means that you’re no longer legally obligated to make payment. Of course, having debt legally discharged won’t help if creditors and debt collectors continue to harass you. That’s why the court enters an injunction prohibiting creditors and collectors from attempting to collect discharged debt.
If a creditor or debt collector ignores that injunction, that company is violating a court order. When that happens, we can reopen the bankruptcy case; in some cases, the creditor will be required to pay you money damages for violating the discharge.
Our goal is not just to get you through your bankruptcy case, but to make a real difference in your life. We know that can’t happen if creditors and debt collectors are ignoring the law and continuing collection attempts. So, we offer all of our clients a free post-discharge credit report audit. When we find that a creditor or collector is jeopardizing your fresh start with illegal activity or inappropriate credit reporting, we take quick action to correct the problem and hold the creditor accountable. Local Bankruptcy Attorney Low Cost Bankruptcy Johnstown bankruptcy attorneys
