Benjamin Robert Ehinger asked:




If you simply cannot fulfill your obligations to your creditors, then you have the option to file for either chapter 7 bankruptcy or chapter 13 bankruptcy.

There is a voluntary bankruptcy, which is when you file for bankruptcy yourself, and there is an involuntary bankruptcy that is when your creditors are the ones that initiate the process of filing bankruptcy.

When it comes to voluntary bankruptcy there are two options. You can file for chapter 7 bankruptcy or you can file for chapter 13 bankruptcy. These are your options so you should know what you are doing before you file for bankruptcy.

When you file for chapter 7 bankruptcy and it is granted to you, then you will have to surrender your properties, or at least the ones that were not exempted by the law. These will be surrendered to the trustee who will liquidate them and use the money to help pay off your creditors. It does not matter if you own enough property to pay off the debts in full, they will still take the property and use as much as they can to help pay your creditors. After this process the debts will be discharged and you will not have to pay on them again.

On the other hand when you file for chapter 13 bankruptcy, it works the same except for one difference. You will have to satisfy some of the unsecured loans and other debts before they will be discharged. This will all depend on what the court decides and they will take into consideration your financial abilities in the future.

Depending on your situation and your debts will depend on whether you file for chapter 7 bankruptcy or for chapter 13 bankruptcy. Either one can be very helpful when you are so far in debt that any other option will not help.

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Dean Shainin asked:




With the proper information in regards to the new bankruptcy laws you can avoid the hassles many people have to deal with because they did not take the time to do some research. Only you can decide what is best for your debt burden with the current bankruptcy law.

Types of Bankruptcy

You may have heard of someone filing for Chapter 11 or Chapter 7. What do they mean by this?

These are actually the types of bankruptcy, so-named after the title of the Chapter of the Federal Bankruptcy Act in which they appear. There are three common types of bankruptcy available. Here is a quick rundown of each one:

Chapter 7

This is also known as liquidation. In a Chapter 7 bankruptcy case, all the assets and nonexempt properties, if any exists, of the debtor must be turned over to a trustee for the purpose of converting them into cash to pay the debtor’s creditors.

In return, the debtor receives a Chapter 7 discharge in the form of a court order, releasing the debtor from all of his or her dischargeable debts. This order also has the effect of preventing creditors from attempting to collect these dischargeable debts from the debtor.

Note that there are some debts which cannot be discharged with a Chapter 7 bankruptcy.

Chapter 11

This type of bankruptcy is typically used for business bankruptcies and restructuring. As such, this is not an option for individual consumers. Besides being far more complex, it is also more expensive to pursue.

A Chapter 11 bankruptcy gives businesses the opportunity to reorganize themselves, restructure debt, and get out from under certain burdensome leases and contracts. “Business” here may include a corporation, sole proprietorship, or partnership.

When a corporation files for a Chapter 11 bankruptcy, the stockholders’ personal assets are not at risk. Since a corporation exists separate and apart from its owners, the stockholders, the only asset the latter stands to lose are the value of their investment in the company’s stock.

Chapter 13

This is sometimes referred to as a “mini Chapter 11″ because it allows small proprietary business owners and certain qualified individuals to file for it in order to repay their creditors but still retain your property.

So how is this different from a Chapter 7 bankruptcy, which likewise allows you to retain certain exempt properties and assets? Chapter 13 is different in that it enables a debtor to retain the assets that would otherwise be liquidated by a Chapter 7 trustee.

In most cases, you can keep your home and your car under either Chapter 7 or Chapter 13. However, there are certain instances under Chapter where you would not be able to keep your rental properties, antique gun collections, etc. Whereas, if you file for a Chapter 13 bankruptcy, you may be able to keep these “luxurious items” and submit yourself to a Plan where you can make repayments.

The goal of a Chapter 7 bankruptcy is to discharge your existing debts so you can get a “fresh start” on your finances. A Chapter 13, on the other hand, obliges you to repay most or all of your debts before your slate is wiped clean. It is because of this – you repay your debts – that you gain a certain advantage over a Chapter 7.

Make no mistake that bankruptcy is a complex process. There are many intricate details involved in this legal process that should be taken into consideration before making any decisions involving bankruptcy. The information above is only basic. There are still many important questions that may arise and only your bankruptcy lawyer who knows more about your particular situation can authoritatively answer your questions.

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Al Falaq Arsendatama asked:




There are a lot of bankruptcy lawyers available around Seattle metropolitan area (which includes King, Snohomish, and Pierce counties) who will give the best strategy for your bankruptcy case. These are professional lawyers who have been handling a lot of clients with bankruptcy files. They will review all of your debts and will be the first to tell you whether you are really in bankruptcy situation or not. Some of bankruptcy lawyers do believe that filing a bankruptcy is not the best resolution after all. It is quite a risky situation to be filed as once you filing this record, it will remain at your record for up to 10 years. While other lawyers believe that one of the main purposes of bankruptcy Law is to give people, who are awfully troubled with debts, a brand new start by wiping out their debts.

So do not hesitate on having a lot of preliminary meeting with some bankruptcy lawyer before you hiring one. This step will allow you to have premiere look on each lawyer on how they will represent and help you maintaining back your personal financial injured with their various strategies. This also allow you to have a good understanding of what Seattle law allows you.

Don’t worry about the cost, as the first consultation service is initially come free. Choose a bankruptcy lawyer who is familiar with the new bankruptcy laws, and can deliver your needs in matters of foreclosure, abusive collection practices, with Chapter 7 and Chapter 13 of bankruptcy files.

Chapter 7 is the option that vast majorities filed regarding their bankruptcy. It is a straight liquidation which gives a person relatively a quick “fresh start” again. In order to pay all of your debts, this chapter will need you to file your entire properties and list of the exemption that you want to keep. This also includes a statement of your financial affairs, your current salary and expenditure. Based on this list, bankruptcy lawyer will liquidate and distribute them all to your creditors. This way you will have your debts wipe out within only around four months.

While the advantage if you using Chapter 13, it will prevent you from mortgage foreclosure. It will allow you to compensate and pay off your debts by restructuring your finances and properties. It is the option that people choose when they want to pay off part of their debts within period of three to five years. In this chapter, debtors are allowed to keep their properties while your creditor will have less money than they are owed on you, plus creditors will not allow to collect any previous debt occur without any permission from the bankruptcy court.

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James R Brown asked:




Luckily for many, there are lawyers who specialize in car repossession. But, they aren’t called “Repossession Lawyers,” they are called Missouri and Illinois bankruptcy lawyers. You see, bankruptcy attorneys can use the powerful federal law that created bankruptcy to stop the repossession of your car or even get it back after it has been repossessed, under certain circumstances.

Your creditors are legally allowed to repossess your car once you’ve missed two payments. Fortunately, a Missouri or Illinois bankruptcy attorney can stop this from happening with a Chapter 13 bankruptcy but you must act quickly. Your must contact a bankruptcy lawyer within 10 days from the date it was taken. Sure, some lenders may give you more than 10 days but, when it comes to your car, it is better to be safe than sorry.

Still thinking that bankruptcy isn’t the best option for you? If you do indeed decide to give your car up, you might be in just as much–if not more–trouble. If your car is sold at auction for less than you owe, you will have to pay the balance back to your lenders. Your creditors will stop at nothing to collect that debt–including harassing phone calls and garnishing your wages. On top of not having a car, these actions will make it much harder to pay back the debt.

Whatever it is you choose to do, remember to do it quickly. Here are a few steps you can take if your car has been repossessed or is in danger of being repossessed.

1. Take a long, hard look at your finances. If the financial situation that makes you unable to pay your car payment is temporary, then perhaps bankruptcy isn’t for you. But, as many Missouri and Illinois bankruptcy attorneys know, debt tends to have a snowball effect. It creates problems in every area of your life and usually has no foreseeable end.

2. Check on every option. Of course, you can always give the lender a call but, in this economy, so many others are doing the same that it may be ineffective. Don’t underestimate the power that Missouri and Illinois Chapter 7 bankruptcy has to change the financial future for you and your family.

3. Act quickly. Whether you decide to give up your car or you decide to save it (and yourself) from your creditors, decide soon. Waiting to take action can take you into a much harder situation to get out of.

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James Witherspoon asked:




The United States bankruptcy code allows people and businesses who are in debt to file for debt protection and potentially discharge or reorganize the money they owe. Bankruptcy allows otherwise responsible people to overcome their debts and get on with their lives. Knowing the various chapters of the code and how they may (or may not) apply to you can be very important in weighing the decision to file for bankruptcy.

If you or someone you love is living with the pressure of heavy, unsustainable levels of debt, it may be beneficial to discuss your financial situation with an experienced bankruptcy attorney. He or she may be able to go over your case with you in greater detail, and give you the professional advice you need to make an intelligent decision.

The Types of Bankruptcy

The US Bankruptcy Code is divided into several chapters, each of which describes a different situation and condition. Some are available only for individuals or only for companies, while others are available for both private and public entities. They are:

· Chapter 7. Chapter 7 involves liquidation of property and is the most common form of debt protection in the United States. Both companies and private citizens can file for Chapter 7. Your non-exempt assets are put up for sale, with the money raised from this sale taken to pay off your creditors. Individuals can have their debts discharged, while companies which file for Chapter 7 are dissolved.

· Chapter 11. Chapter 11 is a reorganizing bankruptcy for corporations. A business drafts a plan to restructure and pay off its debts and a timetable of several years over which to do so. In most cases, it allows the business to keep some or all of its property.

· Chapter 12. Chapter 12 applies only to commercial fishermen and farmers and is tailored particularly for these individuals. An experienced attorney can tell you more about whether you are eligible.

· Chapter 13. Similar to Chapter 11, Chapter 13 allows for reorganization for individuals. An individual submits a repayment plan to the courts, which decide if it is feasible and responsible. An individual needs a relatively large, stable income to be eligible for this chapter.

An experienced bankruptcy attorney can help you determine if any of these options are right for you. To learn more about the process and whether or not you are eligible, please visit the website of the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, today.

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Jon Arnold asked:




Only a few years ago, Congress made multiple huge changes to the bankruptcy laws which impacted how bankruptcy would be filed, and even who is eligible. For example, no longer can you file bankruptcy just because you are tired of paying your bills, but with the new laws, there is a defined set of procedures that must be followed for each chapter being filed, and your financial status will be evaluated under a microscope, where you must be approved before you can even file.

But one of the areas that was left pretty much untouched by the wide range of changes was Chapter 13 Bankruptcy. This chapter was originally constructed to prevent a home from being put on the foreclosure block. But with the massive number of foreclosures that are happening in the US today, it is unfortunate that many people still do not know that Chapter 13 Bankruptcy filing can still be used to prevent foreclosure on their home.

For the average consumer, there are three different types or chapters of bankruptcy that may be available to them, depending on their specific circumstances. The first one is Chapter 7 Bankruptcy, which is the most common type and is also sometimes referred to as a liquidation. Obviously the reason it is known as liquidation is because most of their debt is discharged by allowing the court-appointed trustee to liquidate all of their non-exempt assets. Even with this chapter, however, be aware that there are certain types of debts that cannot be discharged by going bankrupt.

Although it used more appropriate to be used by either businesses or people with substantial assets and income, another type of bankruptcy available to the consumer is Chapter 11, frequently also known as a business reorganization. This type does not wipe out debts, but rather it allows the person or business to reorganize its debt structure and make revised payments to the creditors, sometimes over a longer period of time, and sometimes also with a reduced interest rate. Creditors usually are willing to do this, since collecting their money over time and with interest is certainly better in their eyes than to have the debt wiped out completely via a different chapter.

The last type or chapter of bankruptcy available to the consumer is Chapter 13, frequently also known as the Wage Earner’s Reorganization. This type is the least expensive to file and is typically used by consumers who still maintain their ability to make their payment obligations, usually within three to five years. The total value of their assets which are classified as non-exempt is used as a basis and guideline for the amount that needs to be repaid over this period of time, as well as considering their level of income and any debts which cannot be discharged.

But what many consumers do not realize is that Chapter 13 Bankruptcy also allows property owners to stop foreclosure proceedings if they are behind on their mortgage payments. While the same can be said for the other chapters of consumer bankruptcy, Chapter 13 is particularly designed to permit the consumer to pay the delinquency in equal monthly payments for as long a period of time as 60 months (5 years). The mortgage lender has no choice but to agree to this, as long as all the other requirements and qualifications of this chapter are met.

The procedure to be qualified to file this chapter is more stringent than the others, since it involves a thorough examination of total debt and total income. No chapter of bankruptcy is any longer consider to be a “do-it-yourself” process with all the new legal requirements in place, so regardless of what chapter you are thinking about, it is strongly recommended that you consult with a qualified bankruptcy lawyer and ensure that both you and your property, combined with your specific situation, actually do qualify.

The biggest benefit that you can have with Chapter 13 bankruptcy, if you qualify and if you are facing foreclosure proceedings, is that it buys you time. That time can be used to make your current financial situation better, or it can also be used to find the right buyer for your property. If you move forward with this, keep in mind that the time you are granted with this is finite, and you need to start planning and take action NOW.

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Tobin R. asked:




It is understandable if you want to bury yourself in a pillow and wish your debt problems will go away magically. I mean who wouldn’t? Aside from the fact that those mounting debts can cause you a lot of stress, you have no peace of mind with all those creditors pressuring you to pay. Worse, you are not sure of where to get money to pay them all in full.

If you think about it, there are actually many options to get away from debts. One is through negotiating with your creditors to get a lower interest rate or perhaps an extension of payment period so your monthly payment will be lesser and more affordable. In this case, you need to be ready to justify you are worthy of a good deal by showing them you good credit standing.

Otherwise, you can opt for a loan consolidation where you take out a loan to pay all your debts on a reduced amount. Just be sure to find a reliable consolidation company who will stand as your mediator to negotiate for a reduced amount to your creditors and pay the loan diligently. If none of these seem to work for your current financial situation, then you can file for bankruptcy and work with Chapter 7 bankruptcy lawyer you who can help you go through the process.

The very first thing you need to understand is you current financial capability. Do you have the capability to take a loan that will pay off all your bills? Do you have enough assets or properties you are willing to attach for an equity loan? Do you have a good credit score that can make your creditors agree when you negotiate with them? Answering these questions is not as easy as you think. It will help you understand the relevance of all these when you have a debt management expert by your side. And if all hope seems to be gone to make things better, consult a Chapter 7 bankruptcy lawyer.

You may think that consulting with a Chapter 7 bankruptcy lawyer will cost you a lot and will turn your financial situation worse but you are wrong. Most lawyers offer free consultations to evaluate if you are truly suitable for this option. In other words, you are actually getting a free evaluation about your status so you will know if you need to file for bankruptcy or not. In this first meeting, you are actually being educated already so you’ll know what to do next.

So if you are really having a hard time managing your finances and dealing with your creditors, approaching a Chapter 7 bankruptcy lawyer may be the best move that you can ever make. The lawyer will help you evaluate your case so you’ll know your options upfront. In the end, you can make informed decision on how you can get away from your financial problem.

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J. Everett Myers asked:




Chapter 13 bankruptcy is a debt repayment plan for individuals. It protects your house from foreclosure while allowing you to catch up on over-due mortgage payments. It can also be a viable option for those who may not qualify for Chapter 7.

Chapter 13 is different than Chapter 7, (which may allow you to completely eliminate your consumer debts). Chapter 13 may better suit people who do not qualify for Chapter 7 under the new rules, or who wish to preserve their credit rating by restructuring their debts. Filing a case reorganizes that debt into a single monthly payment. And that payment is then stretched out over 36 to 60 months.

Some qualifications: Chapter 13 is formulated for people who have a regular source of income, and a desire to pay his or her debts, but are currently unable to do so. A court supervises the adjustment procedure. And all unsecured debts must total less than $269,250. All secured debts must total less than $807,750.

All plans which must be approved by the court and provide payment details. Assuming those plans are approved, fixed payment amounts are then sent to the trustee on a regular basis (typically biweekly or monthly). And the trustee distributes those funds to the creditors according to the terms of the plan (often for less than the full payment on their claims). Planning with a certified tax attorney or accountant is advised.

To file for bankruptcy, the debtor files a bankruptcy petition (which is closely related to the Chapter 7 petition), including a thorough financial statement and a complete list of assets and liabilities.

Remember that Chapter 13 just one of several options for people who are trying to save their homes from foreclosure. If you are worried about losing your home in foreclosure or of having your car repossessed, Chapter 13 is an option that can help.

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Caitlina Fuller asked:




Chapter 13 bankruptcy is just another way to reduce your debt but to do so while keeping some of your valuable assets. Arizona bankruptcy lawyers can help you handle a chapter 13 bankruptcy and walk you through the process so everything goes as planned as goes as quickly as possible. You might be wondering whether a chapter 13 bankruptcy is something you would be able to go through. And, if you are over your head in debt and don’t know what to do but aren’t interested in losing your big assets like your home then a chapter 13 bankruptcy is the perfect opportunity. Phoenix, Arizona bankruptcy lawyers will explain to you that by filing this type of bankruptcy you make a plan to pay back your debts over a period of time, which is usually three to five years. The great thing is that you can keep valuable assets that are not covered by exemptions. With a Chapter 13 individuals will be making monthly payments and in some cases biweekly payments so anyone filing for this type of bankruptcy needs a constant source of income.

There is then a confirmation hearing in a court of law. At this meeting the proposed repayment plan will be reviewed and it will be determined whether or not the plan meets the Bankruptcy Code. The biggest difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy is that in 13 individuals keep their property and assets and make payments based on their income in order to pay off creditors.

With this type of bankruptcy the debtor does not see his debts erased but rather must make appropriate payments until the plan is achieved and a discharge is received. While the debtor is in repayment he will be protected by things such as garnishments, lawsuits, and any other type of action by creditors. More debts are eliminated under the Chapter 13 plan than under the Chapter 7 plan.

You need to evaluate your financial situation and determine which bankruptcy is the best option for you. You will want to talk with a lawyer to get some guidance to ensure you are on the right path and making the best decisions for you. After reviewing your financial situation, your assets, and your income stream you will be able to make the best decision. Make sure all your questions are answered before going ahead, though.

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Jon Arnold asked:




Sometimes situations arise when you can no longer pay your bills. Although you may have the best intentions of paying off your debt, you simply may not have the means to make this happen. When you can no longer pay your bills, you may need to consider filing bankruptcy. Hopefully you will have considered your alternatives but sometimes bankruptcy is the most viable option. The question then becomes which type will best suite your financial needs, Chapter 7 or Chapter 13. Your current situation will help you to decide which route is best for you.

A majority of consumers choose to go with Chapter 7 bankruptcy. There are a variety of differences between these two types of filings. Chapter 7 does not require you to make a plan of repayment. Instead, your debt is not immediately wiped out. Instead, a trustee will sell off your non-exempt assets in order to pay off your debts. It is important that you understand with this type of bankruptcy filing, you could potentially lose any property that you currently own.

However, with Chapter 13, you are not required to liquidate your assets in order to repay your creditors. Instead, you make a repayment plan to pay a portion or all of your unsecured debt back. This is done through the court system and payments can be made over a 36 to 60 month period. The amount you repay your creditors must be equal to or greater than what they would receive should you have liquidated your assets, as with the other chapter of consumer bankruptcy. If you follow through with your repayment plan, then your remaining unsecured debt will then be discharged.

If you have lost your job or have no means of repaying your debt, then you should probably consider filing for Chapter 7. However, if you are still able to meet some of your monthly obligations, but cannot pay off your entire debt, then you may want to consider filing for Chapter 13.

It is important that you have a full understanding of the long-term impact of declaring bankruptcy. Whether you are filing for Chapter 7 or Chapter 13, there are financial consequences. Chapter 7 will have a steeper impact on your financial situation, and you are telling creditors that you cannot be trusted to pay off your debts. Therefore, you will have a hard time finding creditors to lend you money in the future. This will be extremely important if you are ever in the need for a new car, mortgage or even a simple credit card.

Chapter 13 has less of an impact on your overall credit rating. Since you are still paying off your debt, just in a restructured form or at a lower interest rate, creditors see you as less of a financial risk, than someone who has wiped out there entire debt through Chapter 7.

Be aware that there are certain types of debt that cannot be discharged with either chapter of bankruptcy, so make sure you have a thorough understanding of the laws, especially with the major recent changes to these laws.

There are both pros and cons to filing either approach to consumer bankruptcy filing. Before committing to either one, you should sit down with a financial adviser and go over your obligations and options completely. Weighing out the pros and cons of both types and basing your decision on your current situation, you will be able to easily decide which route you should go with.

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