Frequently Asked Questions
What is Personal Bankruptcy?
Personal bankruptcy refers generally to the two types of bankruptcy most common to individuals and couples: Chapter 7 and Chapter 13. Both types of personal bankruptcy are designed to help people who can’t pay their debts to get a fresh start and build more stable financial lives, though they operate in very different ways.
What is the difference between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy?
Chapter 7 bankruptcy primarily serves people who have relatively low income and a lot of unsecured debt, such as credit card bills and medical debt. In a Chapter 7 case, most unsecured debt can be eliminated. Once the debt is discharged, creditors and debt collectors are legally prohibited from attempting to collect it.
Chapter 13 bankruptcy offers a solution for people who have regular income, but have fallen behind on their bills and can’t get caught up. In Chapter 13 bankruptcy, the debtor typically keeps all property and makes monthly payments toward past due balances over a period of three to five years.
Can Bankruptcy stop foreclosure?
In many cases, bankruptcy can stop foreclosure. Immediately upon filing, an automatic stay is entered in most bankruptcy cases. The stay puts a stop to collection action, including foreclosure.
Depending upon the type of bankruptcy, the past due balance, available income and other factors, the stay itself may allow adequate time to catch up or a Chapter 13 repayment plan may break up the past due balance into monthly payments over three to five years.
Can bankruptcy stop wage garnishment?
Can bankruptcy stop car repossession?
How long does a bankruptcy case take?
Will filing bankruptcy ruin my credit?
File Chapter 7 Bankruptcy
If you are considering Bankruptcy, Contact Bill Porter Law for a FREE Phone Consultation.