Here is what CAN occur in a Chapter 7 Bankruptcy:
- Remove your liability to pay back most of your debt.
- Stop debt collectors from contacting you.
- Stop pending civil lawsuits and garnishments of your wages.
- Stop a lender from repossessing your vehicle.
- Stop a foreclosure of your home for limited period.
Here is what CANNOT occur in a Chapter 7 Bankruptcy:
- Remove your liability to pay back your student loans, taxes and child support.
- Remove your lender’s secured interest in your home or vehicle.
- Remove criminal fines or court ordered restitution.
- Remove your liability for new debts that occur after filing.
Here is what CAN occur in a Chapter 13 Bankruptcy:
- Stop a foreclosure of your home and allow you to include your mortgage arrears so you can catch up on missed payments.
- Reorganize your finances so that you pay your creditors back over 5 years, then if there are any outstanding debts after that time, you receive a discharge of any outstanding unsecured debts.
- Include tax debts in your payment plan in order to pay back the tax authorities.
- Stop debt collectors from contacting you.
- Stop a lender from repossessing your vehicle.
- Allows you to cramdown or lower the loan of your vehicle to the present value.
Here is what CANNOT occur in a Chapter 13 Bankruptcy:
- Include any criminal fines or court restitution in your payment plan.
- Remove your lender’s secured interest in your home or vehicle.
- Remove your liability for new debts that occur after filing.
- Discharge any student loans or owed child support.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
So, if you have any questions about your debt and you’re thinking of filing for bankruptcy, please reach out to Minnesota’s nicest bankruptcy law firm by going to www.lifebacklaw.com. You won’t regret it!
