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.

http://rexkaufman.vox.com/library/post/the-rules-of-chapter-13-bankruptcy.html

Brown eyed girl asked:


Our plan was for 36 months and we made our 36th payment to the trustee this month. What is our next move?

dgoldenboy67 asked:


I filed for chpt.13 in Nov 2006. I am paying a 1500.00 mortgage, and a 1400.00 payment on the Chpt. 13 repayment plan. I have had tremendous trouble keeping up with the trustee payments.My Bankruptcy lawyer contacted me and said the trustee is going to close my case on monday unless I pay a back fee of 4500.00. Needless to say I dont have the money. I have a house on the market and a closing date of Sept 14th. The lawyer suggested that I let the trustee close the case and go to settlement on the set date to save me some money. My question is I have a vehicle and back taxes in the Chpt.13 plan. How does that factor in after the sale of the house? The lawyer suggests getting a tax attorney for the back taxes I owe. So what about the car? Also, since the trustee is going to drop the plan on Monday, what does this mean in terms of my credit and how it is reflected on my credit report. Is it still reflected as an open bankruptsy? Also, what about the money i paid into the plan? Help!

TJCHI asked:


I was told by attorney to go out and get a new car loan deal for approval by the trustee, problem is many companies won’t do a loan deal in an open bankruptcy. I would appreciate any leads.

river85715 asked:


I am in the process of filing chapter 13. My trustee recommends that I seek the advice of a lawyer. However, a lawyer is not in the budget right now. The trustee says that only a few cases will be successful without an attorney. Are there any trustees or attorneys out there that could give me a few tips for making my own case successful? Any sure fire ways to be sure I am successful on my own with this case? Any advice would be greatly appreciated. Thanks.