Chapter 7 bankruptcy will eliminate most unsecured debt, such as: credit cards, medical bills, personal loans, most civil judgments, payday loans, foreclosures and deficiencies on repossessed collateral.
Chapter 7 business bankruptcy aids businesses in finalizing the close down process and liquidation of assets. When filed in conjunction with personal chapter 7 bankruptcy, protects the owners and/or members of the corporation.
Chapter 13 bankruptcy is a debt repayment plan that lasts 3 to 5 years. All of your secured collateral debt and unsecured debt can be included in the consolidation. You must have a consistent source of income to make your debt repayment plan payment to the trustee and maintain your living expenses. You can also use chapter 13 to pay back taxes at lowered interest rates and with less penalties.
Many people successfully use chapter 13 bankruptcy to save their homes from foreclosure.
At Rachel A. Kidd Attorney at Law, we will decide which chapter is right for you and your financial situation.