The decision to file for bankruptcy is a difficult one, often considered the worst case scenario. However, in many instances it may be your best option. For example, filing for bankruptcy can stop a foreclosure, repossession, or garnishment, allowing you some precious time to deal with your financial troubles. In addition, you may be able to eliminate many types of your debt (in a Chapter 7) or develop a payment schedule (in a Chapter 13) to ease your financial burden. Each client's unique situation will dictate whether a client should file for bankruptcy, and then if a Chapter 7 or Chapter 13 filing is appropriate.

Chapter 7

Chapter 7 filings are commonly known as the "straight" bankruptcy. These filings are for the traditional liquidation of personal, business or partnership assets. Generally, the types of liabilities that may be extinguished include, but are not limited to: medical bills; credit card debts; judgments (in cases not involving fraud or criminal conduct); personal loans or debts; and deficiencies on foreclosed properties or repossessed vehicles.

By extinguishing these debts, you will in effect get a fresh start. Moreover, you will usually be able to keep all of your property (including your house and vehicle as long as you are current with your payments and able to continue to make these payments). However, filing for Chapter 7 is not allowed for all persons seeking to file Bankruptcy. In order to determine if you are eligible, please contact our office to arrange a consultation on which type of Bankruptcy is right for you.

From start to finish, a Chapter 7 Bankruptcy can be completed in approximately 120 days. The final step of the process will involve the debtor receiving a discharge, which is the final document that wipes out all of the dischargeable debts.

Chapter 13

Unlike Chapter 7 filings, Chapter 13 filings do not just simply wipe out your debts. You will have to make payments over a 3 to 5 year period to the Bankruptcy Trustee. Typically, these payments to your creditors are less than you regular monthly payments.

A payment plan will have to be developed which will allow you to pay all of your living expenses and secured obligations and a portion of your unsecured obligations. The monthly payment due to the Trustee under a payment plan is based primarily on your income and expenses. If you do not have a regular income, you will not be eligible to file under this Chapter. After the Court approves the payment plan, and all payments due under the plan are made, you will receive the discharge.

Chapter 13 filings are generally used for persons who earn more than the threshold amount set for filing under Chapter 7, have assets over the exemption limits, or have other debts that may not just be simply discharged. In addition, filing under Chapter 13 may allow you time to get current on your mortgage payments (allowing you to keep your home) or alter your payments on your vehicle (allowing you to keep your vehicle).

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

Investment Property UK - Are UK Interest Rates Pushing Out Investors?
Investment Property ? Rising Interest Rates Investment property is still high on the list of best investment vehicles. But with rising interest rates, can this level of sustained growth continue for investment properties? In the UK, property owners and those with investment property have enjoyed ... more...

Nevada Bankruptcy Basics
The decision to file for bankruptcy is a difficult one, often considered the worst case scenario. However, in many instances it may be your best option. For example, filing for bankruptcy can stop a foreclosure, repossession, or garnishment, allowing you some precious time to deal with your ... more...

California Bankruptcy Laws
California bankruptcy laws allow the use of federal supplemental exemption in conjunction with California exemptions. These laws are derived from federal bankruptcy laws, from Title 11 of the United States Code. The state of California is divided into four bankruptcy districts, each with a ... more...

Cheap Used Car Auctions - How to Squeeze Every Cent Out Of Them
Anyone who needs a vehicle urgently but has a shoestring budget can always check out the cheap used car auctions. Such auctions take place all the time and at any point of time, they are held in different states in the US. A quick visit or call to the local government agencies and auctioneers can ... more...