Your safety remains our priority. Click Here for Contactless Filing.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often referred to as liquidation bankruptcy. You will be allowed to keep your assets which are exempt under state law and your non-exempt assets are often liquidated by the chapter 7 trustee and the proceeds are distributed to creditors according to the priorities established in the code. If you qualify for a chapter 7, this option allows you to eliminate most debts
without paying your creditors back.

Chapter 13 Bankruptcy

A chapter 13 bankruptcy is commonly referred to as the reorganization bankruptcy. Chapter 13 enables individuals with regular income to develop a plan to repay all or part of their debt. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Most people who file for chapter 13 are trying to save homes, cars and/or to pay IRS debt; in some instances chapter 13 is used to protect assets.

Automatic Stay

Immediately upon filing a bankruptcy case, an automatic stay is imposed. This stay acts as an injunction against any type of collection by creditors. Chapter 7 and chapter 13 bankruptcy come with an “automatic stay” which can prevent creditor’s attempts to repossess your property. The stay is used to stop foreclosure and the repossession of vehicles. The automatic stay also prevents creditors from engaging in collection activities, like intrusive calls and letters or garnishing bank accounts and wages.