BankruptcyChapter 7 - liquidation bankrutpcy An eligible debtor* can obtain a court order through which many types of debts are discharged (no longer have to be paid). Before discharge can take place, a trustee appointed by the court gathers and sells the debtor's nonexempt property. The proceeds from the sale is paid to the creditors. The debtor is able to keep any "exempt" property. Examples of exempt property: · Real estate such as a residence · Personal property up to a designated value · Trade or professional tools · Social security, veteran's benefit, disability, illness or unemployment benefit Who can file? · Individuals · Businesses Chapter 13
An eligible debtor can enter into repayment of all or part of their debt over 3 to 5 years. Most eligible debtors under Chapter 13 have a steady source of income. Reasons debtors choose Chapter 13 over Chapter 7: · They have mortgages on homes (that they would not be able to keep under chapter 7) · They have debts that are usually not dischargeable under chapter 7 (student loans, tax debts) Who can file? · Individuals |
Contact us today to schedule a free 30 minute bankruptcy consultation.
|
* A debtor is a person or business who owes money to others.
Grace Law Offices, LLC is a designated a debt relief agency by an Act of Congress and the President of the United States becasue we assist consumers in seeking relief under the U.S. Bankruptcy Code.
Grace Law Offices, LLC is a designated a debt relief agency by an Act of Congress and the President of the United States becasue we assist consumers in seeking relief under the U.S. Bankruptcy Code.