Burr Law Office

Chapter 7 vs. Chapter 13 Bankruptcy: Which Option is Right for You?

Bankruptcy is a tool that allows honest debtors to pursue a fresh start, providing freedom from a number of outstanding debts. However, it is important to seek other debt relief options, learn about the various types of affordable bankruptcy, and consult an attorney before making the decision to file.

Chapter 7

Chapter 7 bankruptcy, or liquidation bankruptcy, can discharge a number of your debts, including credit card debts, mortgages, outstanding medical bills, and car loans. However, there are some debts that cannot be removed with Chapter 7 bankruptcy, including state and federal taxes, student loans, alimony, secured debts, and spousal maintenance or support payments. This type of bankruptcy eliminates debt by liquidating a number of your assets, which are then sold to satisfy the debts to your creditors. There are certain assets that are exempt from this liquidation process, including necessary clothing and household goods, pensions, motor vehicles and jewelry up to a certain value, portions of unpaid wages, and public benefits.

Chapter 13

Unlike Chapter 7 bankruptcy, which satisfies debt through the process of asset liquidation, Chapter 13 bankruptcy involves the reorganization of debts into a monthly payment plan with no interest or late fees. Payment plans structured through Chapter 13 bankruptcy typically span from 36-60 months and allow debtors to keep all of their property. This type of bankruptcy is often beneficial for individuals who do not have enough property assets to satisfy their debts; however, you must have a stable and disposable income that allows you to make the monthly payments.

The best way to determine which type of bankruptcy is right for you is to consult an experienced bankruptcy attorney. The attorneys at Burr Law Office are devoted to helping you eliminate or consolidate your debts and achieve relief from financial hardship. For more information on bankruptcy law, call our office at (877) 891-1638.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

A Breakdown of the Bankruptcy Process

Bankruptcy can help solve a number of financial problems by stopping wage garnishments, foreclosures, repossessions, lawsuits, and harassment by creditors. While Chapter 7 bankruptcy differs from Chapter 13 bankruptcy, the filing process for both types of affordable bankruptcies is very similar.

• Filing and Credit Counseling: When filing for bankruptcy, a debtor begins by filing a petition, schedule, and statement of financial affairs with the bankruptcy court. The schedule includes a listing of all creditors, property, monthly income, and monthly expenses. The filing fee for a Chapter 7 bankruptcy is $306, while the filing fee for Chapter 13 bankruptcy is $281. However, debtors must complete a court-approved credit counseling course via telephone, internet, or in person before filing for either type of bankruptcy. These counseling services typically charge a fee between $25 and $75 based on which counseling course is taken.

• Automatic Stays and Financial Management Courses: Once the filing has been completed, an automatic stay is placed on all of the debtor’s property and assets, including bank accounts, savings accounts, homes, and other personal property. An automatic stay prevents creditors from contacting the debtor in any way, putting an end to creditor harassment. After the automatic stay is in place, debtors must attend a 341 meeting with a trustee who is appointed by the bankruptcy court before participating in a court-approved financial management course. This course is similar to the credit counseling course.
• Discharge of Debts: After the financial management course is complete, debtors will receive discharges wiping out most of their debts. However, some debts will still remain after the bankruptcy process is complete. This includes IRS or state taxes, student loans, secured debts, alimony, and spousal maintenance or support payments.  

It is important to meet with a bankruptcy attorney prior to filing for bankruptcy. An attorney will help you understand what you can expect during the process and may also accompany to your 341 meeting to protect your legal rights when working with a bankruptcy court trustee. For more information on your bankruptcy options, contact Burr Law Office at (877) 891-1638.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

Is Bankruptcy Your Best Option?

Though some people view bankruptcy negatively, this legal recourse is an efficient and honest way to get out of debt. Filing for bankruptcy properly often requires the assistance of an attorney. For more information, take a look at these additional links or call the Burr Law Office at (877) 891-1638.

• Are you struggling with debt? Learn how to stay debt-free with this guide from MSN Money.
• Taking out a secured credit card is a great way to rebuild credit after bankruptcy. Learn more at this page from CreditCard.com.
• There were over 30,000 bankruptcy filings in Wisconsin last year. For more bankruptcy statistics, take a look at this page from the American Bankruptcy Institute.
• Individuals aren’t the only ones who can file for bankruptcy—businesses can too. Find out more at this page from the U.S. Securities and Exchange Commission.
• Do you want to learn more about bankruptcy laws in Wisconsin? Head over to this page from the Wisconsin State Law Library.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

Is Your Debt Piling up?

To learn more about the different options available to help you, check out these great resources below or call Attorney Mike Burr of the Burr Law Office at (877) 891-1638.   

• Though some assets will be seized after filing for Chapter 7 bankruptcy, other property is exempt. Learn more at this page from Cornell University Law School.
• Are you deep in debt? Get some help with this page from the Federal Trade Commission.
• Do you wish to rebuild credit after your bankruptcy? Check out BankRate.com for some good advice.
• When filing for bankruptcy, it’s important to determine your net worth. Use this net worth calculator from CNN.
• Do you have additional questions about Chapter 7 bankruptcy? Take a look at this page from USCourts.gov.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

Do You Know What to Bring to Your First Consultation with a Bankruptcy Attorney?

Deciding to file for bankruptcy is the first step toward regaining solid financial ground. To fully understand your situation and recommend the best course of legal action, a bankruptcy attorney needs certain documentation and information. Here are a few things to bring to your initial consultation with a bankruptcy attorney:

Financial Information

Before you and your attorney can begin the bankruptcy process, you need to divulge all aspects of your finances. This includes past tax returns, recent pay stubs, current bank account balances, your stock portfolio, and a list of assets—everything that gives your lawyer a complete picture of your financial situation. If you purposefully hold back vital information, you may be accused of bankruptcy fraud.

Debt Information

Deciding whether to file for Chapter 7 or 13 bankruptcy depends largely on how much and what kinds of debt you incurred. Therefore, you should bring any and all information regarding your debts, including recent bills, mortgage contracts, loan agreements, and all correspondence with your creditors. If you feel unsure about divulging certain debt information, you should know that your attorney is bound by a confidentiality laws.

Questions

Since the main topic of discussion will be your financial wellbeing, don’t hesitate to ask questions about the bankruptcy process and its results. Before your appointment, it’s always a good idea to brainstorm a list of questions about whether you will have to foreclose and how you can rebuild your credit. A good lawyer always provides detailed answers and may even offer information you didn’t anticipate.

If you’re looking for a bankruptcy lawyer in the Milwaukee or Waukesha area, contact Burr Law Office. Attorney Michael Burr will guide you through the bankruptcy process, every step of the way. Call us at (877) 891-1638 to schedule a consultation.