Bankruptcy

Chapter 7 bankruptcy, also called liquidation, is the most common type of bankruptcy relief.  It is like hitting the reset button on your finances, allowing you to start over without losing important assets like your home or your vehicles.  If you are burdened by garnishment, repossession, medical debt, or creditor lawsuits, Chapter 7 bankruptcy can provide you complete and lasting relief, allowing you to become debt free.  

There are limitations on your household income, assets, and debt in a Chapter 7 bankruptcy.  Typically, it takes about four months after the case is filed in the Bankruptcy Court for a Chapter 7 bankruptcy case to be discharged.

Certain types of debts cannot be eliminated through Chapter 7 bankruptcy such as most student loans, child support, alimony,  and most taxes.

Successive Chapter 7 Cases- If you received your first discharge under a Chapter 7, you cannot receive a second discharge in any Chapter 7 case that is filed within eight years from the date that the first case was filed.

An individual who does not qualify for Chapter 7 bankruptcy may qualify to file a Chapter 13 bankruptcy instead. A Chapter 13 allows individuals to pay some or all of their debts through an approved Chapter 13 plan over a three to five year period, with zero interest to most unsecured creditors, such as credit cards.

Chapter 13 Bankruptcy is also helpful to individuals who want to save their home from foreclosure sale. Chapter 13 Bankruptcy allows individuals to resume their monthly mortgage payments and cure the arrears through their Chapter 13 Plan, using monthly payments spread over a three to five-year period.

Successive Chapter 13 Cases- If you received your first discharge under Chapter 13, you cannot receive a second discharge in any Chapter 13 case that is filed within two years from the date that the first case was filed.