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When filing Chapter 7 or Chapter13bankruptcy, it’s critical to understand the difference between consumer debt and non-consumer debt. If you’re considering filing Chapter 7 or Chapter13bankruptcy, consider enlisting the help of skilled bankruptcy attorneys. What is Consumer Debt?
Filing for Chapter13bankruptcy can provide much-needed relief if you are overwhelmed with debt and struggling to keep up with payments. Under Chapter13, you repay a portion or all of your debt, allowing you to keep assets like your home or car. What Is Chapter13Bankruptcy?
Bankruptcy will wipe out credit card debt, medical bills, and personal loans, but will not eliminate primary obligation debt; things like studentloans, child and spousal support, and newer tax debt. Bankruptcy can also stop or delay a home or mortgage foreclosure, stop collection actions, stop garnishments and lawsuits.
If you do not qualify for a Chapter 7 bankruptcy to liquidate your debts, you may be required to pay back a significant portion of your debts under a Chapter13Bankruptcy, and still suffer the negative impact to your credit score. Strategies to Delay or Eliminate the Need to File Bankruptcy.
They will commonly reduce your interest rate which will result in a lower monthly payment, or wrap missed payments back into the loan which will bring you current. You can work directly with the mortgage lender on a loan modification, or reach out to the Colorado Foreclosure Hotline for free assistance. StudentLoans.
Do Bankruptcies Come in Different Types? There are officially six separate categories of bankruptcy , each designated after a specific section of federal bankruptcy law. However, Chapter 7 and Chapter13bankruptcy are the two types of bankruptcy that are most frequently filed.
Some debts stay with you even after bankruptcy. Studentloans, child support, recent taxes, and court fines must be paid in full. Debts from fraud also cannot be erased through bankruptcy, and creditors can fight to keep these debts active. Chapter 7 bankruptcy remains on credit reports for 10 years.
Chapter13bankruptcy sets up a 3-5 year repayment plan to pay back a portion of what you owe. The Pros Bankruptcy can stop foreclosures , repossessions, lawsuits, wage garnishment, utility shut-offs, and debt collection activities through its automatic stay provision.
Whether you’re facing foreclosure , repossession, wage garnishments, or relentless creditor harassment, our expertise in bankruptcy law can offer the protection and relief you’ve been seeking. One of our firm’s key strengths lies in our comprehensive understanding of both Chapter 7 and Chapter13bankruptcy options.
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