If you discover that you’ve gotten in over your head and are now receiving threatening or harassing phone calls from creditors, you need to speak with an experienced and knowledgeable attorney. We can help determine the options you have as it related to discharging your debt through bankruptcy. While you are in bankruptcy, the bankruptcy code requires creditors to stop all collection efforts against you.
Bankruptcy is the legal method for you to discharge or relieve your debt. While no one is guaranteed to wipe out all debt, many debtors are given such relief. The goal is to lift the weight of oppressive debt and provide you with a fresh start.
Key differences between Chapter 7 and Chapter 13 bankruptcy
- Chapter 7 Bankruptcy – Known as “straight bankruptcy” or “liquidation” cases. It can be filed by individuals, corporations, or partnerships. Under Chapter 7, a trustee is appointed to collect and sell non-exempt property to pay creditors. It is important to note that not all debt can be discharged under the Chapter 7 bankruptcy code.
Individuals are allowed to claim some property as exempt. In exchange, the debtor gets a discharge, or does not have to pay certain types of debt.
Corporations and partnerships do not receive discharges. Consequently, any individuals legally liable for the corporation’s or partnership’s debts will remain liable. Therefore, individual bankruptcies may be required as well as the corporation or partnership bankruptcy.
- Chapter 13 Bankruptcy– Known as “reorganization” bankruptcy. Chapter 13 bankruptcy is often the only option for debtors who do not wish to lose their home while they undergo bankruptcy. Chapter 13 requires the debtor to create a plan to pay off some or all of the debt they owe within a time frame of 3 to 5 years.
The benefit of Chapter 13 is that it allows you to keep all of your property while you repay your debt. Additionally, Chapter 13 can protect you from foreclosure on your home if you uphold your end of the payment plan developed during the Chapter 13 process. While your debts are not totally wiped out, they can be reduced.
There are some challenges. First, the plan is extended over 3 to 5 years, so that means 3 to 5 years worth of income are tied up in repayment. Some workers are ineligible for Chapter 13 such as stock and commodities brokers. Lastly, Chapter 13 candidates cannot owe more than $1 million.
BENEFITS:
- Eliminates debt, provides a fresh start
- May be able to keep your car and home
- Avoids foreclosure
- Stops the harassing phone calls
- Offers peace of mind
We are a debt relief agency. We assist people in filing for relief under the bankruptcy code.
If you’re considering bankruptcy, you need to call an experienced attorney with The Law Office of Todd D. Beauregard, PC at 978-275-1919. We’re ready to help you explore your options.
