Chapter 7 & Chapter 13 Bankruptcy

Don’t let the stigma of declaring bankruptcy keep you mired in debt, fearing repossession or foreclosure. Take the steps you need to get out of debt. We at Allen Turner Law, are here to guide you through the process.

CHAPTER 7 BANKRUPTCY may eliminate most kinds of unsecured debt. Some examples of unsecured debts Chapter 7 may eliminate are credit cards; medical bills; most personal loans; judgments resulting from car accidents; and deficiencies on repossessed vehicles.

In addition to getting rid of your debt, Chapter 7 allows you to typically keep all of your property. As long as your car and mortgage payments are current, and there is no significant equity in your property, we should have no problem making the arrangements for you to reaffirm the debt.

Keep your home, keep your car, keep your personal belongings, but eliminate your debt; that is our goal with Chapter 7. Legal Helpers may be able to use Chapter 7 to provide you with many benefits.

CHAPTER 13 BANKRUPTCY is an interest-free debt repayment plan through which you consolidate your debts and make a payment on your debt over a 3 to 5 year period.

While in a Chapter 13 debt repayment plan, the creditors cannot collect from you, and the creditors are required by a Federal Court order to adhere to the terms of the plan.

One very important thing to remember about Chapter 13 bankruptcy is that you must be working or have a consistent source of income for your repayment plan to be approved by the court. Not only must you be able to pay for your monthly living expenses, but you must also be able to make a payment to the court to consolidate your debts.

Debts that are generally consolidated in a Chapter 13 bankruptcy are mortgage arrears, balances on vehicle loans, student loans, credit card debts and other unsecured debts. All outstanding debts must be included in the Chapter 13 bankruptcy consolidation.