Types of Bankruptcies

Chapter 13 Bankruptcy

A Chapter 13 Bankruptcy is available to individuals and couples with income from any source. In a Chapter 13 you can reorganize or consolidate your debt and pay creditors through monthly payments to a Chapter 13 Trustee over a three to five year period.

A Chapter 13 Can Help You When

• You have equity in your home but are behind on our mortgage payments and wish to keep your home
• You have fallen behind on your car payments but want to keep you car through the plan
• You have overwhelming credit card debt with high interest rates and/or high monthly minimum payments
• You owe taxes
• Your paycheck is being garnished or your bank account has been frozen
• You need to stop your creditors from taking a judgment against you or your property.

Chapter 7 Bankruptcy

A Chapter 7 bankruptcy is available for people who are experiencing extreme financial hardship and cannot repay their existing debts. If your debts are primarily consumer debts, then you must meet the “means test” in order to be allowed to file a bankruptcy case under chapter 7.

A Chapter 7 Can Help You When

• You are having trouble paying for the basics necessaries, such as rent, groceries, utility bills
• You do not have the ability to make a meaningful payment to your unsecured creditors and can meet the “means test"