Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a petition filed with the Court to wipe out or discharge your debts in exchange for you giving up property that is not exempt (property the law allows you to keep) or exceeds your allowable exemptions. In most cases, all your property will be exempt. If you want to keep property like a car or home that is secured by a creditor and you are behind in your payments, then a Chapter 7 case will not be the right choice for you. You must be current with your secured creditors on property you want to keep otherwise these creditors are entitled to take your property to cover the debt.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also called reorganization. It allows you to file a plan with the Court to pay off over a 3 or 5 year period some of your past due and current debts. The most important thing about Chapter 13 is that it allows you to keep all your secured property and nonexempt property provided you can make the monthly payments into the plan which may or may not include payments into the plan for unsecured debt. You should consider filing Chapter 13 if you own your home and are in danger of losing it in foreclosure, are behind on debt payments but can catch up if given time, have valuable property which is not exempt and you have sufficient income to pay your creditors in the plan and still have enough income to pay for your living expenses.
What Bankruptcy can do For You
Bankruptcy can make it possible to eliminate most or all of your debts. Bankruptcy can make it possible to stop foreclosures on your home or mobile home and allow you time to catch up on missed payments. Bankruptcy can make it possible to prevent repossession of a car or other property. Bankruptcy can make it possible to stop wage garnishment, debt collection harassment and other similar collection efforts. Bankruptcy can prevent termination of utility service and restore service that has been disconnected. Bankruptcy can make it possible for a fresh start.
During your initial free consultation we will explain the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy and the bankruptcy process. We will explore your unique circumstances and together we can decide whether filing for bankruptcy is a good choice for you.
It is our philosophy to provide you with prompt legal service, personal attention, and the respect you deserve. Call or e-mail us today for an appointment.
Contact us in Fort Myers, Florida, at (239) 931-1111 to determine if bankruptcy is right for you.