FAQ

01) Why would I want to file Chapter 13 rather than Chapter 7?

There are certain debts that a Chapter 7 does not handle:

Taxes
Student loans
Car loans
Home loans

A Chapter 13 will usually allow you to handle these debts (for example, lowering the purchase price, monthly payment and interest on a car) while paying your credit cards and medical bills nothing. In Chapter 7, you are allowed to keep property only if it is “exempt” (a house, for example, only if it has a limited amount of equity). In Chapter 13, the court can never take any of your property.

02)  Will my car or truck be repossessed?

NO!
Once the papers are brought to the courthouse, a federal court order goes immediately into effect, preventing a car from being repossessed. In a Chapter 7 bankruptcy, the client simply continues to make the payments on the loan. In a Chapter 13, a monthly payment is worked out with the court, which in turn pays the car lender. That monthly payment is often hundreds of dollars less than the original payment, and can be imposed upon the lender regardless of how many months the client may have missed prior to filing bankruptcy.

03)  Will bankruptcy affect my credit rating?

First of all, if you are considering bankruptcy, your credit is probably not all that good to begin with. Secondly, most clients report their credit rating scores actually IMPROVE upon filing their case! Clients typically start receiving multiple offers of credit about 90 days after filing Chapter 7. Credit card companies begin to see them as inviting targets for credit card solicitations because they recognize the filing individual’s debt-to-income ratio has gone to zero after filing and that the filing individual is prevented from filing another Chapter 7 for six years