If you are having a challenge paying back credit cards, lines of credit, business debts, back tax debts, private student loans, medical bills, payday loans, or other unsecured debts, you’re likely looking for a solution for your debts.
When the amount owed gets to the point of seeming hopeless to pay off, or the IRS or state tax authorities are coming after you for amounts that you may not have even known you owed, it creates a lot of stress.
Emotions build up, one can lose sleep, relationships suffer, and other areas of one’s life can be negatively affected. The great news is that your situation can be solved with proper debt relief help.
**Please note: Counselors are available 9:00am to 9:00pm Monday to Friday,
and 10:00am - 3:00pm On Saturdays.All times are in EST. We do not operate in all US states, so bear that in mind
for the content on your web pages. The following states
are excluded in Debt: ID, KS, LA, ME, OR, PR, SC, UT, WV and WY.
We also do not operate Tax in PA or PR.**
Should you file chapter 13 bankruptcy? The decision is very important as it impacts various aspects of your life now and in the future. For informational purposes, we are providing information. This is not legal advice and you should speak with a licensed attorney for legal guidance.
Unlike a Chapter 7 bankruptcy, a Chapter 13 bankruptcy is for people who have income or assets above a certain level. Also called a wage earner’s plan, chapter 13 bankruptcy allows individuals with regular income to create a plan to repay all or part of their debts.
In a Chapter 13 bankruptcy the debtor, you, proposes a plan to repay your creditors in installments over the period of three to five years. Depending on your income, the court determines the length of the plan. During this repayment period, creditors are forbidden from continuing collection efforts.
Remember that the repayment plan is based on court mandated budgets that follow IRS guidelines, and the penalties for failure to pay are severe.
Deciding whether to file for chapter 7 bankruptcy can be a stressful and challenging one. For informational purposes, bankruptcy information is presented below. This is not legal advice and we recommend that you speak with a licensed attorney for legal related questions.
Chapter 7 bankruptcy is categorized as a “liquidation.” What does liquidation mean? It means that in the chapter 7 bankruptcy process, the debtor’s (you) non-exempt assets, are sold by the Chapter 7 trustee. The earnings on the sale of your non-exempt assets are given to your creditors based on the priority which is established in the bankruptcy court.
Wow, that’s a lot of information to process. So let’s just break it down in more simple terms.
If you file for Chapter 7 bankruptcy and you have non-exempt assets, they may be sold in order to compensate creditors.
What constitutes a non-exempt asset?
Your state’s bankruptcy law determines that.
“There are essentially two things that will make you wise -- the books you read and the people you meet.”
― Jack Canfield