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While bankruptcy itself can also be scary, it is often the best option if you have too much debt to get a handle on your financial situation. However, which type of bankruptcy you file will also depend on what kind of debt you have. Secured and unsecureddebt is handled differently in Chapter 7 vs. Chapter 13.
Chapter 7 is the most common form of bankruptcy for individuals and families, and it allows you to discharge many of your unsecureddebts within only a few months. Chapter 7 bankruptcy is a form of personal bankruptcy that liquidates filers’ assets to discharge qualifying unsecureddebts.
Chapter 7 is a disaster when it comes to secured debt. . Chapter 7 will not assist you if your primary source of debt is a mortgage, auto loan, or other kinds of debt. Additionally, not all unsecureddebt is dischargeable under Chapter 7. The means test decides who can seek debt relief. medical debt
If you file for Chapter 13 Bankruptcy in Indiana, you will still be obliged to pay something toward your debts; it’s just that you will be given a payment plan that reduces your unsecureddebts based upon your ability to pay, that puts you on a manageable schedule, and that holds your creditors at bay while you work on making achievable payments.
Enter Sawin & Shea, LLC – a firm with over 50 years of combined experience in bankruptcy services, dedicated to providing compassionate and non-judgmental representation to individuals and families in need. Dischargeable debts are those that can be eliminated through bankruptcy.
It is particularly beneficial for individuals who have a significant amount of unsecureddebt, such as credit card balances and medical bills. In Chapter 7, several different types of debts are eligible for discharge. Chapter 7 bankruptcy is a popular option because it only takes a few months to complete.
Chapter 13 Bankruptcy is a Federal Bankruptcy Court-sanctioned debt reorganization plan. You are not allowed to have more than $465,275 of unsecureddebt (such as credit card or medical debt) or more than $1,395,875 of secured debt (such as a house, property, or vehicle). Personalloans.
Performance Settlement settled debts without the required consumer authorization and tricked certain consumers into enrolling into its debt-resolution services. If entered by the court, the judgment would ban Performance SLC permanently from debt relief services and ban Crenshaw from debt relief services for five years.
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