Chapter 7 Bankruptcy or Not? That is the question.
If you have heard of the phrase “Dump your debt and keep your stuff”, then you have heard of a Chapter 7. This is the most common form of bankruptcy for individuals. In these proceedings, a person is allowed to free themselves from most debts, whether they are unsecured or secured debts. Unsecured debts are debts where . . .
The Power of Chapter 13 Bankruptcy
A Chapter 13 Bankruptcy is referred to as a “reorganization plan for wage earners”. It allows people with regular income to develop a plan to repay all or part of their debts. Under this chapter, a person proposes a repayment plan to make installment payments to creditors over a period of time.
In Chapter 13 Bankruptcies, you are granted the opporunity to avoid forclosure actions on real property (homes or land) that have been initiated by the failure to make mortgage payment or pay property taxes. In these cases, a person is given the opportunity to proposed a repayment or reorginazation plan that cures arrearages . . .