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There are two basic choices under the bankruptcy code for individuals, Chapter 7 and Chapter 13.

Which type of bankruptcy may be appropriate for individuals depends on many factors.  Sometimes bankruptcy may not be the best choice.  Nancy V. Jacob can help you navigate the complicated bankruptcy laws and guide you in choosing the best way to achieve debt relief, either through personal bankruptcy or using other methods of debt relief. 

Basic information about Chapter 7 bankruptcy and Chapter 13 bankruptcy is explained on this website. For additional bankruptcy basics that include helpful videos produced by the U.S. Courts, please visit:
U.S. Courts Bankruptcy Basics
U.S. Courts Bankruptcy Chapter 7
U.S. Courts Bankruptcy Chapter 13


For detailed advice about your situation and your options, there's no substitute for talking to an experienced bankruptcy attorney. Contact us to schedule a consultation.

Chapter 7 Bankruptcy
In a Chapter 7 case, the bankruptcy court appoints a trustee to examine the debtor's assets to determine if there are any assets not protected by available "exemptions". Exemptions are laws that allow a debtor to keep, and not part with, certain types and amounts of money and property. For example, exemption laws allows a debtor to protect a certain amount of equity in the debtor's residence, motor vehicle, household goods, life insurance, health aids, retirement plans, specified future earnings such as social security benefits, child support, and alimony, and certain other types of personal property. If there is any non-exempt property, it is the Trustee's job to sell it and to distribute the proceeds among the unsecured creditors. Although a liquidation case can rarely help with secured debt (the secured creditor still has the right to repossess the collateral if the debtor falls behind in the monthly payments), the debtor will be discharged from the legal obligation to pay unsecured debts such as credit card debts, medical bills and utility arrearages. However, certain types of unsecured debt are allowed special treatment and cannot be discharged. These include most student loans, alimony, child support, criminal fines, and most taxes.
 
In addition to attorney fees, there is a filing fee in the amount of $299.00 that must be paid to the Bankruptcy Court.

Chapter 13 Bankruptcy
In a Chapter 13 case, the debtor proposes a plan, following the rules set forth in the bankruptcy laws, to repay certain creditors over a period of time, usually from future income. A Chapter 13 case may be advantageous in that the debtor is allowed to get caught up on mortgages or car loans without the threat of foreclosure or repossession, and is allowed to keep both exempt and nonexempt property. The debtor's plan is a document outlining to the bankruptcy court how the debtor proposes to dispose of the claims of the debtor's creditors. The debtor's property is protected from seizure from creditors, including mortgage and other lien holders, as long as the proposed payments are made and necessary insurance coverage remains in place. The plan generally requires monthly payments to the bankruptcy trustee over a period of three to five years. Arrangements can be made to have these payments made automatically through payroll deductions.
 
In addition to attorney fees, there is a filing fee of $274.00 that must be paid to the Bankruptcy Court.

 

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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