CONSUMER BANKRUPTCY - CHAPTER 7

Chapter 7 Bankruptcy is designed for those who do not have the ability to pay their existing debts. The purpose of a Chapter 7 Bankruptcy is to provide a fresh start through a discharge of debts. If your debt has grown to a point that paying it off would take longer than it would to rebuild their credit, a Chapter 7 Bankruptcy may be right for you. In a Chapter 7 Bankruptcy, a trustee is appointed to collect and sell, if economically feasible, all of your property that is not protected through the use of exemptions under the law. This process is commonly referred to as “liquidation.” The law also provides a debtor with exemptions which allow you to protect certain assets from liquidation. Once a Chapter 7 Bankruptcy petition has been filed, the “automatic stay” prevents creditors from taking further collection activities, including certain garnishments, lawsuits, harassment over the phone or via mail while the bankruptcy is pending.

What Chapter 7 Bankruptcy can do for you?

A Chapter 7 Bankruptcy can discharge many types of debt. The most common debt dealt with in a Chapter 7 is:

Credit card debt
Medical bills
Lawsuits and certain judgments

Not all debts are dischargeable under Chapter 7, such as:

Most taxes
Child support
Alimony
Student loans
Court ordered fines and restitution
Debts obtained through fraud or deception
Personal injury debts cause by driving while intoxicated or taking drugs

Should I file for Chapter 7 Bankruptcy?

Each individual’s financial situation is unique and not everyone is eligible to file a Chapter 7 Bankruptcy. There are income restrictions which must be met in order to qualify for a Chapter 7 Bankruptcy. Care must also be taken to list all of your assets and debts properly as well as your current finances on the schedules. Assets can be protected through the use of exemptions, which also must be examined carefully. Proper guidance through legal counsel is very important as you navigate through the process of a Chapter 7 Bankruptcy. Contact Huberdeau Law Office, 509-765-1196, in order to schedule a free consultation in order to discuss whether a Chapter 7 Bankruptcy is right for you.

CONSUMER BANKRUPTCY - CHAPTER 13

A Chapter 13 Bankruptcy provides for the repayment of all or a portion of your debt overtime. In a Chapter 13 Bankruptcy, commonly referred to as a “wage earner’s bankrupty,” you agree to turn over a portion of future income to pay all or a portion of your debt through a Chapter 13 plan confirmed by the Court. As part of the Chapter 13 plan, you may be able to keep most of your property, even if the value exceeds any applicable exemptions available. You must have regular income and have debts below the maximum amounts set by statute in order to qualify for a Chapter 13 Bankruptcy.

A Chapter 13 typically reorganizes your debt. As a Chapter 13 Bankruptcy possibility, you must make sure you have a stable source of income. The ability to pay some of your debt is generally based on your income and ability to pay your court confirmed plan.

The Chapter 13 Process

Once filed, a Chapter 13 prevents creditors from taking further actions during the bankruptcy process. A Chapter 13 plan proposing repayment of your debt based upon on your income and what you really can afford is then submitted for Court approval. The period of the plan may be between 3 and 5 years and it must be approved by the Court. Once the plan has been completed, most of the debt remaining is generally discharged through a Chapter 13 Bankruptcy. A Chapter 13 Bankruptcy may be able to help you:

Save your house from foreclosure
Manage existing debts by spreading repayment over time
Discharge debts after completion of the Chapter 13 plan
Stop harassment from creditors

Debts which are not dischargeable under a Chapter 13 Bankruptcy include:

Domestic support obligations
Most student loans
Certain taxes
Most criminal fines and restitution obligations
Certain debts which are not properly listed in your bankruptcy papers
Certain debts for acts that caused death or personal injury
Certain long term secured obligations.

Should I file for Chapter 13 Bankruptcy?

Each individual’s financial situation is unique. Proper guidance through legal counsel is very important as you navigate through the process of a Chapter 13 Bankruptcy. Contact Huberdeau Law Office, 509-765-1196, in order to schedule a free consultation in order to discuss whether a Chapter 13 Bankruptcy is right for you.

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