Bankruptcy
When Do You Need an Experienced Team for Bankruptcy Defense?
You need an experienced team for bankruptcy defense when facing overwhelming debt that you cannot pay, as bankruptcy offers relief and requires expert legal guidance. The Foreclosure Defense Network provides experienced bankruptcy attorneys who can guide you through the process. Bankruptcy offers individuals relief from debts they cannot pay. We educate you about the process and connect you with one of our experienced lawyers. There are two main types of bankruptcies for consumers: Chapter 7, which allows debt discharge under certain circumstances, and Chapter 13, which allows debt repayment over a period, usually five years.
What is Chapter 7 Bankruptcy and How Does It Work?
Chapter 7 Bankruptcy is a liquidation bankruptcy that works by wiping out most of your debts without a repayment plan, provided you meet specific income requirements. To qualify for a Chapter 7, you must meet income requirements; if you make too much money, you’ll have to file under Chapter 13 instead. With a Chapter 7, an “automatic stay” is immediately issued, stopping creditors from pursuing collection efforts. A bankruptcy trustee is appointed to administer your case, review your papers, and sell nonexempt property to pay creditors. However, if you don’t have any nonexempt assets, creditors receive nothing. Chapter 7s also work well for low-income debtors with little or no assets, or for people whose discharged debt exceeds the value of any property sold.
What is Chapter 13 Bankruptcy and How Does It Work?
Chapter 13 Bankruptcy is a reorganization bankruptcy that works by allowing debtors with income to repay a portion of their debts through a structured repayment plan, typically over five years, while keeping all their property. It is designed for debtors with income who have enough left over each month to pay back a portion of their debts with a repayment plan. Most Chapter 13 filers make too much money to qualify for a Chapter 7. Many debtors choose to file for Chapter 13 because it offers many benefits not available in Chapter 7, such as keeping all your property. You pay back all or a portion of your debts through a repayment plan based on your income. Typically, Chapter 13 is for debtors who don’t qualify for Chapter 7 but need debt relief.