In certain situations, Bankruptcy may provide the best option for resolving your outstanding debt and obtaining a fresh start on your financial future. For consumers, there are typically two types of Bankruptcy available. First is Chapter 7, in which most of your debts are discharged and any non-exempt property is liquidated to provide a return to your creditors. In the majority of Chapter 7 cases, the debtor is able to keep their property and their creditors do not receive a distribution from the Bankruptcy Trustee.
The second option is Chapter 13, which provides for a payment plan to reorganize your debt over a period of 36 to 60 months. Chapter 13 is typically used when debtors need assistance catching up on past due secured debt, such as a mortgage or vehicle. It is useful when facing foreclosure and allows the debtor to catch up on the arrearage over a period of up to five years.
If you are facing foreclosure, or do not have the necessary income to settle your debt with your creditors, contact us today to determine your eligibility for Bankruptcy and if it provides the most beneficial option for your unique situation.