If you find yourself unable to pay your bills, getting sued by bill collectors or about to lose your home, filing bankruptcy may help you get back on your feet. We can help you make that choice and decide if bankruptcy is the best option for you and your family.
There are basically 2 types of bankruptcy that a consumer can file.
Chapter 7 bankruptcy results in a discharge, or liquidation, of your unsecured debt. Unsecured debt includes debt that is not secured by collateral, credit card debt, medical debt, deficiencies on mortgages and/or repossessions of cars, judgments and signature loans.
Chapter 13 is an adjustment of your debts. A portion of your unsecured debt is discharged and the remaining amount is re-paid through a plan. Generally, you must have regular income to sustain a re-payment plan. Chapter 13 is a good way to catch up arrearages on mortgages and car loans while discharging a portion of your unsecured debt. You can also use this type of bankruptcy to reduce or “strip down” an unsecured amount on, for example, your mobile home or car. Most importantly, Chapter 13 can stop foreclosures.
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