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What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, also known as reorganization bankruptcy, is a legal option available in the United States for individuals with a regular income who seek to restructure and repay their debts over a specified period, usually three to five years. 

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What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a legal process in the United States that allows individuals and businesses to eliminate most of their unsecured debts. This chapter is designed to provide a fresh start to debtors who are unable to repay their creditors.

I Have Been Served with a Lawsuit and Don’t Know What to Do

Being sued by creditors is not something that should be ignored. The ultimate way to stop a creditor lawsuit is to file either Chapter 7 or Chapter 13 bankruptcy. The bankruptcy code prohibits creditors from taking any further action against you to collect a debt. In other words, once you file for bankruptcy, creditors cannot garnish your wages, levy your bank accounts and/or place liens against your assets. At the Hollins Bankruptcy Law Office, we will look at the specific facts of your case to determine whether Chapter 7 or Chapter 13 will be the best option in your case.

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I am Facing Foreclosure

If you are facing foreclosure, bankruptcy may be your only solution to save your home. In the majority of cases, filing a Chapter 7 bankruptcy can delay the foreclosure for a number of months. You may also be able to save your home by filing for Chapter 13 bankruptcy.

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When you file either a Chapter 7 or 13 bankruptcy, the court issues an automatic stay that directs the lender to postpone the foreclosure sale until they are permitted to do so by the court. Chapter 13 is usually more effective at helping individuals to keep their home because it gives them time to repair their finances and devise an income-based budget with monthly payments made to trustees.

At the Hollins Bankruptcy Law Office, we will look at your individual situation to determine what is the best option to save your home from foreclosure.

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What Will Happen to My Debt

The main reason to file bankruptcy is to discharge, eliminate and wipe out debt. Although the majority of debts can usually be eliminated in a bankruptcy proceeding, certain other debts will not.

 

A Chapter 7 filing will permanently wipe out the majority of your debt, including credit card debts, medical bills, and personal loans. However, some debts cannot be eliminated, such as student loans, most taxes, and child support or alimony.

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A Chapter 13 filing will allow you to reorganize your debt and make payments only to the extent possible based on your income.

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For more information regarding which debts will be completely eliminated in a bankruptcy filing, please contact The Hollins Bankruptcy Law Office. 

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How do I Stop Harassment from Creditors

Once you have filed either a Chapter 7 or Chapter 13 bankruptcy, creditors are prohibited from contacting you in any manner to collect on a debt. With a bankruptcy in place, creditors cannot initiate or continue any lawsuits against you.

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In the event that a creditor continues to contact you to collect a debt after you have filed bankruptcy, they would be in violation of the Fair Debt Collection Practices Act (FDCPA) and bankruptcy codes. In such cases, you may be entitled to monetary compensation.

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Once you have retained The Hollins Bankruptcy Law Office to file bankruptcy, we will personally deal with the creditors so they will stop harassing you.

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My Car Was Repossessed, Can I Get It Back?

There is no doubt that once a bankruptcy is filed, a creditor is prevented from repossessing your vehicle. But what is not well known is that when a secured creditor repossesses a debtor’s car before the bankruptcy is filed, the debtor can still get the car back and save it.

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If you file Chapter 7, the automatic stay by the bankruptcy court will prevent the lender from selling your car without court permission. This provides you with a good opportunity to negotiate with your lender and get your car back.

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To learn more about how bankruptcy will save your car if it has been repossessed, please contact The Hollins Bankruptcy Law Office.