Looking for a bankruptcy lawyer to help you file chapter 7 bankruptcy or chapter 13 bankruptcy? Do you have bankruptcy questions or need to understand bankruptcy terms? Contact us today to immediately arrange your free bankruptcy consultation. If you live in Port Richey, our office is just down the street. Give us a call and set an appointment today.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy or “straight bankruptcy” is the most popular form of bankruptcy because it allows the debtor to “wipe the slate clean” and start fresh. Chapter 7 bankruptcy is available to individuals and couples. The bankruptcy is normally completed within 3 ½ to 4 months after filing. Once a debt is discharged, it is eliminated and you never have to pay that debt again! Most debtors who file Chapter 7 bankruptcy can keep most of their exempt property.
Chapter 7 bankruptcy is generally used by debtors who lack sufficient income to cover their outstanding debts after taking care of their basic living expenses, and who have no hope of ever repaying their creditors. Chapter 7 bankruptcy is often used to eliminate debts such as credit card bills, payday loans, medical bills, repossessions, and personal loans. Chapter 7 bankruptcy is the most common form of bankruptcy. Approximately two-thirds of all bankruptcies filed are Chapter 7 bankruptcies. Chapter 7 bankruptcy is often used by folks who have become overwhelmed by their debts. This can often occur when someone becomes unemployed, gets divorced, or becomes burdened by large medical bills. Once you file Chapter 7 bankruptcy, you can begin to rebuild your life without worrying that your wages will be garnished, your bank account attached, or your property seized. The creditors cannot call you at work, threaten you or harass you. Remember that the bankruptcy laws were designed to help you. You don’t have to allow creditors and collection agencies to take away from you everything you’ve worked for all your life!
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is the reorganization of a portion of your debts with a comfortable payment you can afford to pay. You generally do not have to repay all your debts!
STOP HOME FORECLOSURES – SAVE YOUR HOME!
Chapter 13 bankruptcy can also be used to stop home foreclosures. You may take 3 to 5 years to catch up on your back house payments. You can also take 3 to 5 years to catch up on your back condo or mobile home payments, and, best of all, you won’t lose your home. You may even be able to eliminate your second and third mortgages with a Chapter 13 bankruptcy. You can also often lower your automobile, mobile home, and furniture payments in a Chapter 13 bankruptcy. Chapter 13 bankruptcy is often used to pay IRS taxes that would not be eliminated in a Chapter 7. Under a Chapter 13 payment plan, the interest and penalties on these taxes generally stops. You are allowed to pay the IRS with a monthly payment that you can afford to make. The IRS cannot garnish your bank account, attach your wages, call you at work, or put a lien on your property. But remember, if the taxes are more than 3 years past due, we may be able to totally eliminate the tax by filing bankruptcy. Chapter 13 bankruptcy establishes a reasonable monthly payment for the debtor to pay to the bankruptcy trustee. The trustee then distributes this payment to the debtor’s creditors. Chapter 13 bankruptcy generally only requires debtors to repay a small portion of their total debt. You generally do not have to pay all of your debt back when you file a Chapter 13 bankruptcy! This is why filing a Chapter 13 bankruptcy is much more beneficial than simply consolidating your debts through a credit counseling agency.