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Chapter 7 Bankruptcy

Chapter 7 bankruptcies are the first type of bankruptcy that we want to look at for you, because it is the least expensive, and you’ll be in and out of the process in less than four months. The problem is that not everybody has the ability to make a Chapter 7 work for them, and they may have to therefore look at Chapter 13.

Chapter 13 Bankruptcy

Chapter 13 bankruptcies are actually wonderful, because they are so powerful. You see on the news all these companies filing Chapter 11 bankruptcy and keep on rolling. They keep in business, and they don’t lose their assets. The same is true for individuals who file a Chapter 13. It’s specifically designed so you lose absolutely nothing. Additionally, it was developed back in the Great Depression when there were so many foreclosures going on that the banks were actually looking at bankruptcy themselves, so what Congress did is they stepped in, and passed the legislation so that you can file a Chapter 13 bankruptcy.

Therefore, if you’re behind on your mortgage payments, or you’re behind on your real estate taxes, we simply go and put those into a Chapter 13 plan and allow you to pay them back. That is a wonderful procedure so that it protects your house. We also can use that on a vehicle to get that back for you, and put the payments through the Chapter 13. What that does is it does two things: It extends the term, and reduces the interest . That way you can keep all of your assets, even if you’re in trouble.

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