Bankruptcy is a legal process designed to:
- Protect someone from their creditors,
- Eliminate most debts, and
- Protect certain property.
There are two main types of personal bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy
- Most common and less expensive
- Faster process — usually completed within 5 months of filing
- Discharges most unsecured debts: credit cards, personal loans, medical bills
- Does NOT eliminate most taxes, student loans, or child support/alimony
- To qualify, you must show the court that your basic living expenses exceed your take-home income — i.e., you don’t have money left over at the end of the month.
- Chapter 7 is a liquidation bankruptcy:
- The court may sell some non-exempt assets to pay creditors
- Most people do not lose property due to exemptions protecting common assets
- You can work with a bankruptcy attorney beforehand to assess if any of your assets would be at risk, and decide whether to proceed.
Chapter 13 Bankruptcy
- Still protects you from creditors
- Requires you to repay some debts through a court-approved plan
- Plans typically last 3 to 5 years
- Used by people who:
- Earn too much for Chapter 7
- Are trying to stop foreclosure and save a home
- There are other reasons someone might file Chapter 13, but these are the most common.
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Bankruptcy.
I understand you're seeking assistance with bankruptcy. Have you already filed for bankruptcy or are you considering it?
Considering.
Are you looking for advice on Chapter 7 bankruptcy, Chapter 13 bankruptcy, or another type of bankruptcy?
I don't know.
Is there anything else the bankruptcy lawyer should know before I connect you? Rest assured they'll be able to help with your decision.
Yes.
Hello, my name is Alex and I'll be the attorney assisting you today. I have over 15 years of experience with bankruptcy law and I'd be happy to answer your questions. I'm sorry to hear about any financial problems you might be going through; I know that can be a very stressful situation.
Before we continue, can you please provide a little more information?
- Is there a particular reason you are looking into filing bankruptcy? Is there a lawsuit, garnishment, or foreclosure issue?
- In general, what type of debt do you have?
Since I haven't received a response from you, here is some general information about personal bankruptcy.
Bankruptcy is a legal process designed to:
- Protect someone from their creditors,
- Eliminate most debts, and
- Protect certain property.
There are two main types of personal bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy
- Most common and less expensive
- Faster process — usually completed within 5 months of filing
- Discharges most unsecured debts: credit cards, personal loans, medical bills
- Does NOT eliminate most taxes, student loans, or child support/alimony
- To qualify, you must show the court that your basic living expenses exceed your take-home income — i.e., you don’t have money left over at the end of the month.
- Chapter 7 is a liquidation bankruptcy:
- The court may sell some non-exempt assets to pay creditors
- Most people do not lose property due to exemptions protecting common assets
- You can work with a bankruptcy attorney beforehand to assess if any of your assets would be at risk, and decide whether to proceed.
Chapter 13 Bankruptcy
- Still protects you from creditors
- Requires you to repay some debts through a court-approved plan
- Plans typically last 3 to 5 years
- Used by people who:
- Earn too much for Chapter 7
- Are trying to stop foreclosure and save a home
- There are other reasons someone might file Chapter 13, but these are the most common.
