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What is Chapter 7 bankruptcy?
Chapter 7, also known as “liquidation” bankruptcy, entails
debtors losing some, but not all, of their property. Chapter 7 is for
people who are unable to pay most or all of their debt, causing them to
lose some non-exempt assets in exchange for having most of their debts erased.
What is Chapter 13 bankruptcy?
Chapter 13, also known as “reorganization” bankruptcy, allows
consumers to reorganize their debt through repayment plans. These plans
are based on the consumer’s income, the amount of debt they owe,
and the value of their property, and take approximately 3 to 5 years to complete.
What is the difference between Chapter 7 and Chapter 13?
Chapter 7 bankruptcy is intended for people who are unable to pay back
most or all of their debts, but wish to keep as much of their property
as they can. Chapter 13 bankruptcy enables consumers to pay off their
debts through payment plans.
How long does the bankruptcy process take?
The length of your process will depend on the type of bankruptcy you file
for, and how complex your situation is. Typically, completing a Chapter
7 bankruptcy will take about 3 to 4 months, while a Chapter 13 bankruptcy
can take anywhere from 3 to 5 years to complete.
If I file for bankruptcy, will creditors stop calling?
Yes, but sometimes you may receive a call before creditors are notified that you have filed. If a creditor continues to try and collect after they have received notice, refer them to your attorney, because they are subject to severe sanctions and penalties by the bankruptcy court.
Is bankruptcy my only option?
No, bankruptcy is not your only option, and it is best to consider all
options before deciding to file. If you obtain more income than debt on
a monthly basis, debt settlement may be the solution for you. Debt negotiation
is another option, which enables debtors to make agreements with creditors
to pay off debts.
What is foreclosure?
When you took out a loan from the bank or a mortgage company to purchase
or refinance your home, you made a promise that if you could not pay back
the money, they would be entitled to take your home. The foreclosure process
is when the creditor attempts to recover the money you owe them by seizing
and selling your home.
Can the bank just kick me out of my home?
No. The only way you can be forced to leave your home is by an order of
the court. You can be evicted, but there are court procedures that the
mortgage holder must follow for the foreclosure, and then for the eviction.
Do I have to move out of my house during foreclosure?
No. Even through completion of the foreclosure process, ownership of your
home is transferred from you to the highest bidder. This transfer of ownership
is not complete until the closing following the foreclosure auction. Once
this is over, you will become a tenant in the house you previously owned,
and the new owner must follow the necessary legal procedures to evict you.
Why do I need a bankruptcy lawyer?
Filing for bankruptcy can be a complicated and lengthy process. It is beneficial
to seek the assistance of an experienced attorney who knows what steps
to take to ensure your process is completed correctly. When you work with
our firm, you can be confident that there are seasoned advocates by your
side who know what it takes to help you reach the best solution possible
for your situation.
Have more questions or concerns? Call us today at (229) 999-4105 for further assistance.