Speaking with a bankruptcy lawyer near you can be the best way to get information about how filing bankruptcy can affect your debt and your future.

A local bankruptcy attorney can help you understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy, so that you can make an educated decision about the best next step for you.

Keep in mind, however, that each bankruptcy case is different. To get more thorough answers to all of your questions, you should speak with a bankruptcy lawyer near you. If you would like a free case review with a local bankruptcy lawyer, fill out the form and we’ll help you connect with an attorney nearby. Fill out the form below for a free bankruptcy case evaluation by a local attorney.

Bankruptcy filed under Chapter 13 gives people a range of advantages over liquidation under a bankruptcy filed under Chapter 7. Maybe most significantly, chapter 13 provides folks a way to preserve their homes from foreclosure. By filing under this chapter, individuals can halt foreclosure proceedings and may remedy past due mortgage payments over time.

Nevertheless, they will have to still make all mortgage payments that come due during the Chapter 13 plan by the due date. Yet another advantage of chapter 13 is that it allows people to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments.

Chapter 13 bankruptcy also has a specific provision that protects third parties who are responsible to the debtor on “consumer debts.” This provision might shield co-signers. Finally, bankruptcy filed under chapter 13 acts like a consolidation loan under which the person makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chap 13 protection.

Virtually any person, even if self-employed or operating an unincorporated business, is qualified for bankruptcy filed under chapter 13  as long as the individual’s unsecured debts are less than $360,475 and secured debts are less than $1,081,400. These amounts are altered regularly to reflect changes in the consumer price index. A corporation or partnership may not be a bankruptcy filed under chapter 13 debtor.

Individuals cannot file under bankruptcy filed under chapter 13 or any other chapter if, during the former 180 days, a previous bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover assets upon which they hold liens. In addition, no individual may be a debtor under chapter 13 or any chapter of the Bankruptcy Code unless he or she has, within 180 days prior to filing, received credit counseling from an accepted credit counseling agency either in an individual or group briefing. There are exceptions in emergency circumstances or where the U.S. trustee (or bankruptcy administrator) has identified that there are inadequate permitted agencies to provide the needed counseling. If a debt management plan is created in the course of required credit counseling, it will have to be filed with the court.

If you’re considering bankruptcy, talk to a local bankruptcy attorney about your options. An experienced  debt attorney can provide you with which options are right for you.

If you are in the position where you are considering whether or not to file bankruptcy, you are probably thinking about your future credit options. Bankruptcy should be your last option when you are in debt, as you will find that your credit takes an even bigger hit when you file. However, this does not mean that you won’t get the chance to start over again once you file and get everything squared away. Always find professional help to hear all of your options, but if bankruptcy is all that you can do, you should know your financial world is not completely dead to you in the future. There is credit after bankruptcy.

There are some companies that will extend you credit after bankruptcy for the simple reason that they know you need it, and they also know there is an extended time between filing and when you might be able to file again. That means early on they know they have a better chance of getting their money out of you because you will not be able to turn around and file again if you default. They know you are a risk, however, and that means any credit after bankruptcy that you get will have a higher interest rate and higher penalties on late or missing payments.

You may even find that some of the companies that just lost out to you will try to offer your credit after bankruptcy. This happens when your debt is discharged and you are no longer in their system. Some companies are so large that they don’t keep track of these old debts that have been written off, and you could be anyone to them. The same rules will apply with this credit after bankruptcy. You will pay more for the privilege of having credit through them, even if they don’t remember that you have already been a customer.

When you are looking for credit after bankruptcy, remember that you have to use your head. You filed bankruptcy because your credit was bad, and you had no way to reasonably pay off all of your debts. If you have filed, you may not be in a better position, and getting credit directly after bankruptcy could put you back in the hole sooner than you think. It doesn’t make any sense to file and then put yourself right back where you started. Think about things before you do them, and make sure you know you are in a better financial position before you attempt any type of credit situation. If you need to, get help with budget, spending habits, and how to save your money for the future. Consumer credit counseling is always a smart idea in these cases.

One of the main purposes of Bankruptcy Law is to give a person who is hopelessly burdened with debt a fresh start by wiping out his or her debts. Under Chapter 7 Bankruptcy the debtor receives a discharge on all dischargeable debts. There are 19 general classes of debt that are discharged under Chapter 7 Bankruptcy.

Chapter 7 bankruptcy, which is sometimes call a straight bankruptcy, is a liquidation proceeding. A trustee is appointed. The debtor turns over all non-exempt property to the bankruptcy trustee who then sells it for cash which is then given to the creditors. The debtor receives a discharge of all dischargeable debts usually within four months. In the vast majority of cases the debtor has no assets that he would lose, so Chapter 7 will give that person a relatively quick “fresh start”. Chapter 7 is different from other bankruptcy filings because the debtor needs not make a payment to the trustee.

An added advantage with Chapter 7 bankruptcy is that by signing a reaffirmation agreement a debtor is allowed to keep certain property by continuing to pay for a car loan or a mortgage on their home. This agreement is possible because under the US Government Bankruptcy Code a debtor could be allowed to retain some or all of his property.

Even though in some cases a Chapter 7 bankruptcy would mean that you will lose all your assets, this need not always be the case. It is strongly recommended that if you are apprehensive and feel you will lose your assets, discuss the matter with your Bankruptcy Attorney.

Under the federal bankruptcy statute, a discharge is a release of the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer required by law to pay any debts that are discharged. The discharge operates as a permanent order directed to the creditors of the debtor that they refrain from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contacts. Although a debtor is relieved of personal liability for all debts that are discharged, a valid lien (i.e., a charge upon specific property to secure payment of a debt) that has not been avoided (i.e., made unenforceable) in the bankruptcy case will remain after the bankruptcy case. Therefore, a secured creditor may enforce the lien to recover (repossess) the property secured by the lien.

If you file under Chapter 7 you must undergo a “means test” to qualify for Chapter 7 bankruptcy. This is how the IRS determines who can or can’t file. Your income and expenses are examined to see how they compare to the standard for your area as set by the IRS.

For example, if you earn less than the median income for a family of your size in your state, you can file for Chapter 7 bankruptcy. However, if your income from the last six months is greater than the median income, and you can pay at least $6,000 over five years or $100 a month, toward your debt you can’t file for Chapter 7.

As soon as you file for bankruptcy, creditors are prevented from trying to collect on your debts through an “automatic stay.” The stay preserves your property and gives you a break from being sued. It’s very important to note that Chapter 7 will not stop repossession or a foreclosure. Automatic stays don’t cover failure of making back payments. Only by filing Chapter 13 can you delay a foreclosure.