CHAPTER 7 BANKRUPTCY SUMMARY
A Chapter 7 bankruptcy is called a liquidation plan and takes approximately 90 days from filing to discharge (assuming there are no problems). This is the most desirable bankruptcy since it is done in 3 months, however some people do not qualify for a Chapter 7 bankruptcy due to high income or owning assets that are worth more than we can protect as exempt. We will check your eligibility to file Chapter 7 and the consequences or options to file Chapter 13.
CHAPTER 13 BANKRUPTCY SUMMARY
A Chapter 13 Bankruptcy is a re-organization payment plan allowing a debtor to keep non-exempt assets that would normally be sold (liquidated) in a Chapter 7 to pay part of their debts. These non-exempt assets exceeding the value of what we can protect from creditors, such as a family cabin, boat, RV, or other non-exempt assets. Also, if a debtor makes too much income they may not qualify for a Chapter 7. A Chapter 13 Bankruptcy petition is setup on a 3 to 5 year repayment plan from filing to discharge and the payment is based on what you can afford so you still may only pay pennies on the dollar and the remaining debts are discharged at the end of the plan.