What can you do if you are drowning in debt?
Chapter 7 - "Fresh Start Bankruptcy"
Chapter 7 is designed for debtors in financial difficulties that do not have the ability to pay their existing debts. Chapter 7 exempts most assets. Most of our clients keep everything. The purpose of filing a Chapter 7 case is to obtain a discharge of your existing debts. Proper advice is key to a successful discharge. Most general unsecured debts are discharged in Chapter 7. There are some exceptions.
Chapter 13 - Repayment of All or Part of the Debts of an Individual with Regular Income
Chapter 13 is designed for individuals with regular income who would like to pay all or part of their debts in installments over a period of time. Under Chapter 13, you must file with the Court a plan to repay your creditors all or part of the money that you owe them, using your future earnings. The period allowed by the court to repay your debts may be three years or five years, depending upon your income and other factors. The Court must approve your plan before it can take effect.
* Chapter 13 may also help you eliminate the payments on your second or third mortgage.
