What does a Chapter 7 bankruptcy do for me?

What does a Chapter 7 bankruptcy do for me?

• Stops the annoying and harassing phone calls
• Stops wage garnishments and unfreezes bank accounts
• A No Asset Case grants a full discharge of all credit card debt, medical bills and other
  unsecured debts
• Allows a debtor to surrender a no longer affordable car and avoid collections
• Allows a debtor to surrender a realty property to the bank and avoid having to back pay
• Gives the debtor a fresh start in life

Mansion Law Firm is a debt relief agency, and helps people file for relief under the bankruptcy code.

How Chapter 13 Bankruptcy Can Affect Individual Financially

If your debt has got out of your control and your home is going into foreclosure.  You should seek the advice of a bankruptcy lawyer if you are thinking of filing for bankruptcy. Chapter 13 bankruptcy can be used to save your home.

When filing Chapter 13 bankruptcy, your assets are fully protected. You don’t have to worry about losing your car or home. In fact, there is no need to worry about losing anything. Any unsecured debt that you have can be completely eliminated. The only thing you will have to pay for are any secured loans that you have; however, on the bright side, your payments on such loans can be lowered to an amount that you can afford.

When you file for Chapter 13 bankruptcy, the following will stop immediately:

• Tax collection
• Lawsuits
• Tax penalties
• Harassment from creditors
• Bank levies
• Evictions
• Tax interest
• Wage garnishments
• Foreclosures

Why in some situations is it necessary to file a Chapter 13 Bankruptcy instead of a Chapter 7 Bankruptcy?

A chapter 13 bankruptcy is reorganization and allows the debtor to pay back his or her creditors over an extended period of time at a lesser amount. The debtor also has the opportunity to surrender property, reinstate mortgages and car loans. A debtor may also have the opportunity to reduce vehicle loans.

Following are some situations where it is necessary to file a Chapter 13 Bankruptcy instead of a Chapter 7 bankruptcy:

• The debtor’s income is above the state median for a Chapter 7 Bankruptcy filing.
• A debtor has a pending foreclosure and wants to keep his or her house.
• A debtor has a vehicle that is about to be repossessed and he or she wants to retain the vehicle.
• The debtor has a previously filed a Chapter 7 Bankruptcy within the statutory time and is therefore not able to file another Chapter 7 Bankruptcy.

After a debtor files a Chapter 13 Bankruptcy, he or she is put on payment plan for a minimum of 36 months to a maximum of 60 months. During the 36-60 months, the creditors cannot attempt to collect on their debt. After the completion of the plan, the remaining unsecured is discharged by the Court. If a Chapter 13 Bankruptcy is dismissed for failure to make plan payments, the debtor is once again subjected to the collection practices of the creditors.