Chapter 7
Are you suffering from the weight of credit card debt? Do you need protection from creditors? At Bleakley Law Offices in Muskegon, Michigan, our bankruptcy attorneys understand your situation and can advise you.
Chapter 7 of the United States Bankruptcy Code is commonly known as a liquidating bankruptcy, personal bankruptcy, or just plain "bankruptcy." It is also referred to as "consumer" or "personal" bankruptcy, although businesses can also file under Chapter 7.
The goal of most personal bankruptcy is to get out of debt and allow you a "fresh start" on your finances. In other words, once your discharge is granted, you no longer need to repay the debts that were incurred before you filed your bankruptcy. Your creditors are entitled to share in the proceeds obtained from the liquidation of your non-exempt assets. Under Chapter 7, the amount your creditors will get is fixed by the value of your non-exempt assets.
Certain debts are non-dischargeable in a Chapter 7. Examples of these are alimony and child support obligations and taxes less than three (3) years old.
Chapter 13
Chapter 13 is a section of the Bankruptcy Code that helps qualified individuals or small proprietary business owners (not a corporation or partnership), who desire to repay their creditors but are in financial difficulty. Among other things, it offers great opportunities to pay off past due mortgage or car payments over 36-60 months, giving you time to catch up and keep your property. It is often referred to as a "mini Chapter 11" because you usually repay something to your creditors and you retain your property and make payments under a plan.
One purpose of a Chapter 13, as opposed to a Chapter 7, is to enable a debtor to retain certain assets (for example, your home) that might otherwise be liquidated by a chapter 7 Trustee. It also provides an alternative to Chapter 7 when you have too much "disposable income" (your net monthly income exceeds your net monthly expenses by too much) and usually yields much lower monthly payments than you were previously paying and after 36 months, your debts are gone.
Chapter 13 protects individuals from the collection efforts of creditors; permits individuals to keep their real estate and personal property; and provides individuals the opportunity to repay their debts through reduced payments.
Having money struggles? Call us today at toll free at 1-888-701-5120. We can help you get out of debt.
