Bankruptcy Law: Definitions, Opportunities And FAQ
Chapter 7: This type of bankruptcy can help you when you are unable to pay existing debt if your assets are without equity and qualify under the means test. This is the “wipeout” that can allow you to start fresh once you obtain a discharge of their debts.
Chapter 13: This type of bankruptcy can help you if you own assets with equity you can’t protect, have room in their budget for a structured repayment plan for all or part of your debts, and have fallen behind on house and car payments, but want to keep your house and/or car.
Garnishment: A garnishment is crushing and takes money from your monthly budget. If you file your bankruptcy before the return date on the garnishment, then you can most often have the money that was garnished returned to you (so long as it was not garnished more than 90 days prior to the filing of your bankruptcy petition). Bankruptcy immediately stops garnishments.
Foreclosure: You can save your house from foreclosure in a Chapter 13 bankruptcy. In a Chapter 13 plan, you can repay the missed payments over a period of up to 60 months while maintaining your current mortgage payments. You can stop a foreclosure until the sale occurs; once the sale occurs you are unable to reverse the foreclosure.
Repossession: If your vehicle has not been sold at auction, you can retrieve your automobile after repossession upon filing a Chapter 13 bankruptcy. You will be required to repay all of the missed payments over the course of your Chapter 13 while maintaining current payments on the vehicle once it is returned to you.
Q: Can I keep my property in bankruptcy?
A: Oftentimes there are exemptions allowable in your bankruptcy to protect your property. However, there are occasions when assets worth significant value may be turned over to the trustee for sale to pay your creditors.
Q: When can I qualify for a home loan after I file bankruptcy?
A: Many factors are involved when determining when you are able to obtain home financing after filing for bankruptcy. Factors include the kind of loan (FHA, conventional or VA), whether you have ever been foreclosed and your income from employment. In some cases, you can obtain financing as soon as two years after your discharge from a Chapter 7. There are some loans that can be approved during a Chapter 13.
Q: Do I have to file bankruptcy against everyone I owe money?
A: Yes. You are required to include every creditor to whom you owe money. Call to speak with a bankruptcy attorney to inquire about keeping your property safe during bankruptcy.
Q: How can I get individualized advice on my unique circumstances?
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.