(Chapter 7 and Chapter 13)
Although bankruptcy laws have changed, the vast majority of people still qualify for bankruptcy protection. A bankruptcy filing will stop creditor phone calls and harassment, stop repossessions and wage payment orders and stop foreclosure proceedings against your home while protecting your assets.
If you are behind on your mortgage or auto loan, bankruptcy allows the opportunity to set up a 3-5 year repayment plan to pay the arrearage, get back on your feet, and obtain a fresh start.
Mary Stewart Law is a debt relief agency. We help people file for bankruptcy relief under the federal bankruptcy code.
A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with an income to develop a plan to repay all or part of their debts over 3-5 years. The main reason people choose a chapter 13 case over a chapter 7 case is to stop a foreclosure on their home mortgage and set up a repayment plan to catch up their payments and get back on track. If your income is higher than the state median income for your household size, you may be required to file a chapter 13 case. In most cases, the chapter 13 debtor will pay only a small percentage of the outstanding balance of their credit card debt.
A chapter 7 bankruptcy case does not involve the filing of a repayment plan as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay your creditors. Not all assets are available to a trustee. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors, such as a home mortgage or an auto loan. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property. Most people who file chapter 7 are “no asset” debtors. This does not mean you don’t own anything; it means that all of your assets are exempt or protected from the claims of creditors.
Mary offers a free 30 minute consultation to review your financial situation and outline the options available to you. Contact us using the form below to set an appointment.