Chapter 7 is a form of bankruptcy that allows you to liquidate your unsecured debt. Common examples of unsecured debts are credit cards, medical bills, payday loans, signature loans, prepossession, deficiencies, and judgments. If you stop paying unsecured debt there is not any property that the creditor can take from you because there is no collateral.
A Chapter 13 Bankruptcy is a reorganization of your debt. Unlike a Chapter 7, which simply liquidates your unsecured debt and has no payments, a Chapter 13 Bankruptcy is a powerful tool to pay creditors on terms that are favorable to you, the debtor. This chapter of bankruptcy allows the Debtor to keep property that has deliquent payments. A debtor normally utilizes a Chapter 13 Bankrupcty in the following situations:
FAQ
How can bankruptcy help me with a foreclosure?
When you file bankruptcy a temporary stop on all collection activity will go into place. This will stop the bank foreclosing on your home. This is true regardless of which chapter you file under. With proper handling the bankruptcy can put a permanent stop to foreclosure if other workable payment arrangements are possible for the debtor.
HOw Can I afford to file bankruptcy
This is an important issue and can be discussed during the initial consultation. Often, when you stop paying some of the overwhelming debts that you are currently maintaining, new options emerge.
Isn't filing bankruptcy a bad thing?
Bankruptcy sparks intense emotions in many people. The credit card industry has spent billions of dollars trying to establish a stigma surrounding bankruptcy. Bankruptcy is a valid and necessary option for many people. Bankruptcy dramatically impacts peoples live in a real way.
Shouldn't I just file on my own?
People who hire lawyers to help them file bankruptcy have their debts wiped away almost without fail, national filing data shows. And debtors with attorneys fare far better than those who go it alone, filing pro se. Studies show clear benefits for those who successfully wipe out their debts, from higher credit scores to higher incomes. Bankruptcy is deceptively complicated. There is a lot to understand and plan for before you file. I would recommend you not only hire an attorney to help you with your bankruptcy but make sure you hire an attorney with experience in bankruptcy.
Aren't bankruptcy petition preparers cheaper than hiring a lawyer?
Unregulated “petition preparers” who promise bankruptcy on the cheap can put you in a very bad position. Some people have been victimized by deceptive or dishonest practices by Bankruptcy Petition Preparers. Bankruptcy Petition Preparers may charge too much for their services or may give you bad information that harms you. It also may be hard to get a refund of any money that you pay to a Bankruptcy Petition Preparer or collect other damages that you suffer.
If you use a Bankruptcy Petition Preparer and later have complaints, please contact the United States Trustee’s Office (503-326-4000 in Portland; 541-465-6330 in Eugene).
Does Mark Fowler enjoy practicing bankruptcy law?
It is a very rewarding experience to meet with a client in crisis who is facing the loss of their property, experiencing loss of sleep and loss of good will with friends and family members, and having the opportunity to improve their situation. My number one goal is to assure that clients who work with me benefit from my services and walk out of my office a new person with a fresh start. It is my experience that anyone is one job loss or one unexpected emergency away from the need for a bankruptcy attorney. All of my clients are good people that have been the victim of bad circumstance.