CHAPTER 7 BANKRUPTCY
Eliminate debt and get a fresh start.
Chapter 7 is a form of bankruptcy in which you eliminate (discharge) most unsecured debts like credit cards, medical bills, cash advances, old cellular phone bills, personal loans and deficiency balances on car repossessions.
Secured or leased debts (such as house loans and car loans) must be paid back pursuant to your contract if you want to keep the property. There is no payment plan. If you don’t want the property you can stop paying the debt and eliminate (discharge) it. In this case you can keep the property temporarily
If you qualify for Chapter 7, a discharge (or the clearing of your debts) takes place within approximately 4 months of filing, and there is typically only one court meeting, called a 341 Meeting of Creditors. There is no Judge at this meeting, only a lawyer who is called a “Trustee”. With my firm, this meeting is usually quick (less than 10 minutes) and low stress.
AUTOMATIC STAY STOPS ALL COLLECTION IMMEDIATELY
The filing of a Chapter 7 Bankruptcy creates the AUTOMATIC STAY, which is a provision under the law that stops al collection such as a foreclosure sale, garnishment or repossession. Creditors must also stop contacting you.
To file a chapter 7, there is a limit on how much property you can keep and how much income you can earn. If you have too much property or income, you may be eligible to file a Chapter 13 Bankruptcy.
CHAPTER 13 BANKRUPTCY
STOP HOME FORECOSURE, STOP AUTO REPOSSESSION -REDUCE UNSECURED DEBT
With a Chapter 13 bankruptcy you will be required to make payments to court-designated trustee, who will then distribute the funds to your creditors.
File Chapter 13 to stop or prevent a HOME foreclosure – If you qualify, a Chapter 13 will stop or prevent a foreclosure if you are behind on your mortgage. You must continue paying your current mortgage payment but the arrearage (amount you are behind) can be paid back over a period of 36 to 60 months. You must file the Chapter 13 BEFORE THE FORECLOSURE SALE to save the home.
File a chapter 13 to stop or prevent auto repossession. Chapter 13 can stop a repossession and even allow you to get your car back after its repossessed.
IF your income is too high for a chapter 7, you can qualify to file chapter 13 to lower your credit card balances and other unsecured debt.
CREDIT REPORTING ON THE THREE CREDIT BUREAUS
There are three credit reports. They are Experian, Transunion and Equifax. The Chapter 7 bankruptcy record can stay on your credit reports for up to 10 years from the filing date, and a completed Chapter 13 bankruptcy can remain on your credit report for seven years from the filing date.
The accounts that were included in your bankruptcy may fall off your credit report earlier, as most negative marks get removed after seven years.
WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE.