Bankruptcy
PERSONAL Bankruptcy Attorney
Jeffrey A. Smith
assists his clients in obtaining relief under Chapter 7 and Chapter 13 of the Bankruptcy Code since 1995. To get advice from an experienced bankruptcy attorney
in evaluating whether bankruptcy is an option for you, give us a call today at 731-855-1351.
Bankruptcy Code Chapter 7
Chapter 7 of the Bankruptcy Code, sometimes known as straight bankruptcy or liquidation, allows debtors to get a fresh start in their financial life. Chapter 7 allows debtors to reaffirm secured debts – debts with collateral, such as houses, cars, furniture, etc. By reaffirming these debts, you keep the collateral and make the payments just as if you had not filed bankruptcy, or you may surrender the collateral and owe nothing on the debt. Unsecured debts, such as credit cards and medical bills are generally wiped out completely. There are certain limitations on whether or not you can file under Chapter 7, such as whether you have filed before within a certain timeframe, or if your income is too high.
Bankruptcy Code Chapter 13
Chapter 13 of the Bankruptcy Code, sometimes known as wage earner's bankruptcy, allows debtors to repay their debts according to a plan proposed to the Court. Chapter 13 is primarily used when a debtor is behind on debt and the creditor is attempting to foreclose or repossess their collateral or garnish a debtor’s paycheck. Chapter 13 stops these collection activities and allows the debtor to catch up back payments according to the plan and keep creditors from pursuing collection actions while they do so. As in Chapter 7, a debtor may also surrender the collateral. Creditors, such as credit cards, medical bills, lenders who have foreclosed or repossessed collateral, etc., may receive a percentage of the debt owed to them or may receive nothing at all, depending on several factors. Debtors whose income exceeds certain guidelines are limited to filing Chapter 13 rather than Chapter 7.
Call For Your Bankruptcy Consultation
Call our office today at 731-855-1351
to speak with our team. We look forward to working with you.