Benefits of Chapter 7 & Chapter 13 Bankruptcy

  • The automatic stay immediately stops any lawsuit filed against the debtor and virtually all actions against the property by a creditor, collection agency or government entity.

  • Along with the principle benefit of stopping a home foreclosure or the repossession of other types of secured collateral, like a car, a Chapter 13 Bankruptcy can also help eliminate most of your unsecured debt.

  • You'll have 36-60 months to catch up on delinquent accounts according to a schedule that you and the Bankruptcy Trustee have agreed is workable for you. The bankruptcy plan allows the debtor to spread out payments to get caught over time and prevents the debtor from having to come up with all of the money immediately.

  • You'll make one monthly payment to the bankruptcy trustee for distribution—you'll have no direct contact with creditors during the protection period of 3-5 years.

  • The other main benefit of a Chapter 13 Bankruptcy is the 100% protection of your valuable assets from seizure by your creditors. If you own a home or car that that is paid in full or has significant equity, a Chapter 13 Bankruptcy will allow you to reap the benefits of the discharge, the elimination of at least some of your debt, and allow you to keep your hard earned assets!

  • Co-signers may be protected.
  • By contrast, the primary benefit of a Chapter 7 Bankruptcy is the elimination of most or all of your unsecured debt.

  • You can obtain relief from your debts in a shorter period of time. The typical Chapter 7 Bankruptcy case lasts only three to four months from the date you file your Chapter 7 Bankruptcy case with the court until you receive your discharge.

  • Creditors can't contact you while the automatic stay is in effect—or after debts are discharged.

For low cost help with your Bankruptcy, call 800-951-7011!