Chapter 7
Chapter 7 is a straight liquidation of the debtor. As in any Bankruptcy filing, all assets are presented and listed, and non-exempt assets are used to pay creditors. Unless people have significant assets, most of the time they will keep all of their property. With one filing of a Petition and other required documents, and the appearance at one brief meeting before a Trustee of the Bankruptcy estate, you can be absolved of your debts.
Each case requires individual attention, and consult with an attorney about how the law pertains to your particular circumstances. 651-704-9600.
Chapter 13
Chapter 13 is a payment plan over a period of time (usually 60 months). While Chapter 13 does involve ongoing payments to the Trustee's office over time, it offers some amazing benefits that Chapter 7 does not:
1) Auto Loan cramdowns - pay the actual value of your vehicle to moneylenders (see explanation on this website);
2) Stop foreclosure, make up missed payments over time (usually 60 months) and keep your home (see explanation on this website);
3) Keep more property by paying for its value over time into the plan. If you have something you really want to keep, you can pay for it over time through the plan. For example, if you have a partial share in a family vacation property, you do not have to give this property to your creditors - you can pay its value into the plan and that money will go to your creditors. Chapter 13 can keep the Trustee from getting this property; in a Chapter 7, the Trustee has the legal right to take any unexempted portion of this interest and sell it.
4) Pay some of your attorneys fees over time (see explanation on this website).
Each person's cirumstances are unique and fact specific. Call today for a free consultation. 651-704-9600.
