SEE EXEMPTIONS

CHAPTER 7: Chapter 7 bankruptcy is a complete liquidation of your debts. Chapter 7 bankruptcy is what people typically think of as bankruptcy. Chapter 7 bankruptcy is designed for debtors who are unable to pay back their debts. Under chapter 7, a debtor does not pay back his unsecured debts. Debts that are secured (homes, cars, and furniture loans) are usually repaid and a debtor can retain the property. Alternatively, the debtor can return the secured property to the creditor and not reaffirm the debt or pay the debt. A typical chapter 7 bankruptcy last approximately four months. At the end of the bankruptcy the debtor receives a discharge of all of his debts listed in the petition. There are some debts that are not discharge under the bankruptcy code. Typically debts that are non-dischargeable include certain taxes, student loans, child support, alimony, debts as a result of fraud, and debts as a result of a drug driving judgment. Attorney’s fees for chapter 7 can range between 1000.00 and 1500.00 dollars. In addition there is a 299.00 dollar filing fee.

CHAPTER 11 & 12: Similar to a chapter 13 is a chapter 12. A chapter 12 is limited to those debtors who drive majority of their income primarily from a family-owned farm. A Chapter 11 bankruptcy is designed currently for the reorganization of a business was also available to individual debtors. A Chapter 11 also proposes a plan to pay past outstanding debts in the future similar to a chapter 13.

CHAPTER 13: An alternative to chapter 7 bankruptcy is a chapter 13 bankruptcy. Under a chapter 13 bankruptcy payments are made to a trustee. The payments to the trustee are based on your ability to pay not the amount of your debts. Under chapter 13 a debtor proposes a plan to pay part or all of his debts. The plan can be as short as 36 months or as long as 60 months. For example, a chapter 13 plan may propose to pay creditors 10 percent of the total amount owed. A chapter 13 can be advantageous to the debtor by allowing them a method to pay back house payments or car payments and still retain the property. A chapter 13 can also be advantageous to the creditor because they will receive sum payment as opposed to no repayment under chapter 7. Attorney’s fees for chapter 13 are usually 2,600 dollars plus a 274.00 dollar filing fee (attorneys fees can be paid through the plan).