posted by admin on May 23
The U.S. Bankruptcy Code offers two main types of personal bankruptcy: Chapter 7 & Chapter 13.
Chapter 7 bankruptcy
Under Chapter 7, the debtor is generally allowed to keep a specified amount of personal property and home equity and have most unsecured debts discharged (eliminated).
Unsecured debts include credit card, medical and utility bills and personal and payday loans.
Any non-exempt assets a debtor owns may be liquidated (sold) by the bankruptcy trustee. The proceeds of the sale go toward the debtor’s outstanding debts.
Although many debts may be discharged through Chapter 7 bankruptcy, child support, recent tax debts, alimony and student loans may not be discharged.
Chapter 13 bankruptcy
Under Chapter 13, debtors are placed on an agreed-upon repayment plan that usually lasts between three and five years.
Those who file Chapter 13 bankruptcy make one regular monthly payment to the bankruptcy trustee and the trustee then distributes appropriate payments to creditors. There is no direct contact with creditors.
If the debtor makes all payments on time, at the end of the repayment plan, the balances of unsecured debts may be discharged (eliminated).
Call us now at 1-877-860-3506 for a free review of your Bankruptcy options.
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