Chapter 7 

Chapter 7 is a form of bankruptcy that allows you to be excused from payment of your unsecured debt. Common examples of unsecured debts are credit cards, medical bills, payday loans, signature loans and judgments. If you stop paying unsecured debt there is no property that the creditor can take from you because there is no collateral.

It is very common for people to get in over their head with credit card debt as a result of loss of income or unexpected expenses such as medical bills or car repairs. You’ve may have experienced this yourself at one time.

You would file Chapter 7 if you are consistently unable to pay your credit card and unsecured debt, after paying your secured debt (house payments, car payments, etc).  It is all too common for people to make minimum payments for years, and attempt to work with their creditors just to find themselves owing as much or more than when they started.

Therefore, Chapter 7 Bankruptcy is a responsible way for you to reorganize your finances, erase your debt, and achieve the fresh start you deserve.

Chapter 13

Chapter 13 Bankruptcy simply put is a reorganization of your debt.  Chapter 13 Bankruptcy is a powerful way to pay creditors on terms that are favorable to you, the debtor. Chapter 13 Bankruptcy can allow a debtor to stop the foreclosure of a residence or repossession of a vehicle.

The Chapter 13 repayment plan allows the debtor to take any mortgage arrears and pay back the mortgage company over a three to five year period. This provides the debtor an opportunity to impose payment terms favorable to the debtor, rather than unrealistic terms imposed by a creditor. Taxes can also be paid over a period of up to 5 years, without tax levies or garnishments.

Debts that may not be dischargeable in a Chapter 7 can be paid back through a Chapter 13 Bankruptcy. Examples of non-dischargeable debts are most income taxes and back child support.

The Chapter 13 Bankruptcy allows the Debtor to repay these debts through a structured payment plan that you can afford.  

If you are considering Bankruptcy or want to find out more about your available options, please call our office at (919) 878-5125 to arrange for a free consultation.
 

A Federal and State Approved Agency providing DEBT RELIEF under Federal Bankruptcy Law for over 30 years!