While there are at least five kinds of bankruptcy, two of them are of the most importance to the regular person. They are chapters 7 and 13.
Chapter 7 is for those people who find themselves in a lot of debt. Perhaps the person has 100k of credit card debt, or, maybe very large medical bills. In either case, this person (and possibly the spouse) may want to avail themselves of the protection that is afforded by Chapter 7 of the bankruptcy code. Here, the person(s) file Chapter 7, and, assuming that all of the requisite parameters are met, the person can receive a full discharge of all of his or her debts. It is important to note that a qualified local attorney needs to go over the case- to see that the person does indeed qualify to do a chapter 7. Also, some debts are not dischargeable at all- such as student loans, most IRS debts, alimony (maintenance), child support, and criminal violations, to name a few. Fortunately, most debts are dischargeable- that is, they can be eliminated.
Find A Bankruptcy Lawyer, Bankruptcy Attorney Portland Oregon, Chapter 7 Bankruptcy Rules,
What if a person is way behind on his or her mortgage? To save his or her home, a person can do a Chapter 13. This is where the bankruptcy court gives a person time - usually 5 years, to slowly catch up on the mortgage arrears. In addition, the client's credit card debt can also be put into the 5 year "plan" to allow the person/client to slowly catch up on that debt too. so, if a person owes their home lender let's say 50,000 in arrears, they would have to pay about 850-900 per month, for 5 years (in addition to their normal mortgage payment). So, in effect, a Chapter 13 is sort of a reorganization for an individual (whereas a chapter 11 is usually for businesses- helping them to stay in business and pay off debts according to a court approved plan). One of the very key aspects of Chapter 13 is that the arrears are paid off, over 5 years, at ZERO per-cent interest. That matters, a lot.
In summary, Chapter 7 can afford, for those who qualify, a chance to start over, to get out of nearly all debts. Chapter 13 is for those who need to get a grip on debts- often mortgage arrears- and to pay them off slowly. This process can often help a person to save their home. How a person qualifies for Chapter 7 and/or 13 is the subject of other articles.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Dallas Bankruptcy Lawyer
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment