Chapter 7 and Chapter 13
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Chapter 7 Bankruptcies
Chapter 7 Bankruptcy is a Federal Law (11 USC) created for the purpose of giving debt relief to
individuals who need it. Congress recognized that many people will run into financial difficulty throughout
their life time so it created bankruptcy laws to protect them from their creditors. Congress understood
that there will be many people who want to repay their creditors, but due to unforeseen hardships such as
job losses, divorces and medical bills, they simply cannot repay their creditors.
In short, filing Chapter 7, with only a few exceptions, may allow you to wipe away (discharge) a lot of your
unsecured debts such as credit cards, medical bills, broken leases, unsecured loans, etc. without having
to pay any of it. The creditors in you Chapter 7 bankruptcy are automatically stayed from calling you,
harassing you, writing you nasty letters, suing your, or, basically, doing anything from collecting that
money. Once you receive your discharge (order that states that your debts are formally wiped away), this
restraining order becomes permanent and your creditors are forever prohibited from trying to collect on
the debt.
When might be a good time to file Chapter 7?
- You've fallen behind on some of your credit card payments
- Creditors are calling you at home or at work
- Your interest rates on your credit cards have increased because you were late on some of your
payments.
- The balance on your credit card keeps increasing each month
- Your credit card company increased your minimum monthly payment and you cannot afford it
- You have reached or exceeded the limit on some of your credit cards
- You have had to juggle credit card payments by using some credit cards to pay off other credit cards.
- Although I have enough monthly income to pay my normal monthly living expenses, you do not have
enough left over to get caught up or get ahead
- You have trouble sleeping at night because you stress about making ends meet
- You are unable to save money for retirement because you do not have enough money left over at the
end of the month
- You need money to pay your creditors so you are thinking about borrowing from your retirement account
or worse, taking out a home equity loan
- You are having marital problems because you and your spouse argue about finances
If any of the above sounds familiar, it may be time for you to consult with an experienced Chapter 7
bankruptcy lawyer who can sound advice on whether you should file. Filing Chapter 7 may finally give you
the relief that you need to once again enjoy life.
Chapter 13 Bankruptcies
Congress understood that there may be many people who want to repay their creditors, but due to
unforeseen hardships such as divorce, high medical bills, loss of job., they cannot repay them in a timely
manner.
In short, filing Chapter 13, may allow you to immediately stop home foreclosure, auto repossession, wage
garnishments, and consolidate your debt into one monthly payment that you can afford. The filing of a
Chapter 13 bankruptcy imposes an automatic stay and thereby stops any action until authorized by the
Bankruptcy Court. In many cases, filing Chapter 13 will allow you to consolidate the following debts into
one monthly payment called a bankruptcy "Plan."
- Mortgage arrears
- Automobile arrears
- Past due property taxes
- Past due home owner association dues
- IRS debt
- Credit card debt
- Medical bills
- Child support arrears
- Student loans
- Debt obligations ordered by a marital agreement
If you file Chapter 13, you will see that Chapter 13 bankruptcy law often gives you greater relief than do
other alternatives such as debt negotiations, debt settlement, and credit consolidation.
Chapter 7 Bankruptcy is a Federal Law (11 USC) created for the purpose of giving debt relief to
individuals who need it. Congress recognized that many people will run into financial difficulty throughout
their life time so it created bankruptcy laws to protect them from their creditors. Congress understood
that there will be many people who want to repay their creditors, but due to unforeseen hardships such as
job losses, divorces and medical bills, they simply cannot repay their creditors.
In short, filing Chapter 7, with only a few exceptions, may allow you to wipe away (discharge) a lot of your
unsecured debts such as credit cards, medical bills, broken leases, unsecured loans, etc. without having
to pay any of it. The creditors in you Chapter 7 bankruptcy are automatically stayed from calling you,
harassing you, writing you nasty letters, suing your, or, basically, doing anything from collecting that
money. Once you receive your discharge (order that states that your debts are formally wiped away), this
restraining order becomes permanent and your creditors are forever prohibited from trying to collect on
the debt.
When might be a good time to file Chapter 7?
- You've fallen behind on some of your credit card payments
- Creditors are calling you at home or at work
- Your interest rates on your credit cards have increased because you were late on some of your
payments.
- The balance on your credit card keeps increasing each month
- Your credit card company increased your minimum monthly payment and you cannot afford it
- You have reached or exceeded the limit on some of your credit cards
- You have had to juggle credit card payments by using some credit cards to pay off other credit cards.
- Although I have enough monthly income to pay my normal monthly living expenses, you do not have
enough left over to get caught up or get ahead
- You have trouble sleeping at night because you stress about making ends meet
- You are unable to save money for retirement because you do not have enough money left over at the
end of the month
- You need money to pay your creditors so you are thinking about borrowing from your retirement account
or worse, taking out a home equity loan
- You are having marital problems because you and your spouse argue about finances
If any of the above sounds familiar, it may be time for you to consult with an experienced Chapter 7
bankruptcy lawyer who can sound advice on whether you should file. Filing Chapter 7 may finally give you
the relief that you need to once again enjoy life.
Chapter 13 Bankruptcies
Congress understood that there may be many people who want to repay their creditors, but due to
unforeseen hardships such as divorce, high medical bills, loss of job., they cannot repay them in a timely
manner.
In short, filing Chapter 13, may allow you to immediately stop home foreclosure, auto repossession, wage
garnishments, and consolidate your debt into one monthly payment that you can afford. The filing of a
Chapter 13 bankruptcy imposes an automatic stay and thereby stops any action until authorized by the
Bankruptcy Court. In many cases, filing Chapter 13 will allow you to consolidate the following debts into
one monthly payment called a bankruptcy "Plan."
- Mortgage arrears
- Automobile arrears
- Past due property taxes
- Past due home owner association dues
- IRS debt
- Credit card debt
- Medical bills
- Child support arrears
- Student loans
- Debt obligations ordered by a marital agreement
If you file Chapter 13, you will see that Chapter 13 bankruptcy law often gives you greater relief than do
other alternatives such as debt negotiations, debt settlement, and credit consolidation.