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For example, if you co-own a house with someone filing Chapter 13 bankruptcy and the house is your primary residence, the automatic stay will protect you from a home foreclosure because it’s considered consumer debt. How Does Consumer and Non-Consumer Debt Impact Your Chapter 7 Bankruptcy Filing? The post Consumer Debt vs.
If you fail to repay an unsecured personal loan, the lender cannot repossess your assets. Common unsecured loans include: Bank loans with no collateral. In addition to unsecured personal loans, there are other types of unsecureddebts, such as: Medical bills. Repossession deficiency claims.
If you’re struggling with debt and considering bankruptcy, speaking with a bankruptcy lawyer can help you determine your best options and give you some clarity on how the process works. At Sawin & Shea, LLC, our Chapter 7 Bankruptcy lawyers have helped clients just like you in the Indianapolis and surrounding areas.
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.
When filing for Chapter 13 bankruptcy, your home’s mortgage payments will be restructured into your repayment plan, and creditors will not be able to repossess your home or take legal action against you thanks to the bankruptcy automatic stay. With Chapter 7 bankruptcy , you reaffirm your secured debts while discharging unsecureddebts.
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. Bankruptcy legal fees are an investment in finally resolving your debt for good.
Quick Summary: Chapter 7 bankruptcy allows individuals to discharge most unsecureddebts. Creditor harassment is any aggressive or threatening communication from a debt collector. Wage garnishment is a legal procedure where a creditor obtains a court order to withhold part of your earnings from your paycheck to repay a debt.
By stretching out, modifying, or reducing payments, Chapter 13 helps make debt more manageable for financially distressed individuals while allowing them the opportunity to save assets like their homes from foreclosure and cars from repossession. Your bankruptcy lawyer can negotiate lower balances or interest rates as well.
If you fail to repay an unsecured personal loan, the lender cannot repossess your assets. Discharging Personal Loans Through Chapter 7 Whether you should discharge a personal loan in Chapter 7 will depend on whether the loan is secured or unsecured. Nonpayment of title loans can lead to vehicle repossession.
In broad terms, bankruptcy law differentiates between consumer-related debt as well as secured vs. unsecureddebt. If a debt is secured, it means it is backed up by collateral property. If a debt is unsecured, no collateral is put up as a guarantee to pay.
The agreement makes you responsible for the debt again like the bankruptcy never happened for that debt. All of the original terms of the loan are back in force, including the creditor’s right to repossess the collateral if you get behind on payments in the future.
These parties could foreclose or repossess the property securing the loans. They could lock you out of your location or repossess equipment. Businesses should therefore strongly consider not paying unsecureddebt pending an arrangement with creditors that provides a clear path through this crisis.
Chapter 13 Bankruptcy Discharge Once you complete paying off your repayment plan over three to five years, the court will discharge your eligible debts. The reason why creditors prefer you file Chapter 13 is because Chapter 7 bankruptcy discharges unsecureddebts after the trustee liquidates nonexempt assets.
However, many people who file for Chapter 13 Bankruptcy do so either because they don’t qualify for a Chapter 7 Bankruptcy or because they want to keep their house from being foreclosed upon and their car from being repossessed. Our lawyers have years of experience assisting Indiana residents through the bankruptcy process.
This shorter period is likely because most individuals who file Chapter 13 will still have to pay some debts back through a payment plan rather than having it entirely discharged. However, it can give you an opportunity to reorganize under the court’s protection and make plans on how to ultimately deal with the debts.
This shorter period is likely because most individuals who file Chapter 13 will still have to pay some debts back through a payment plan rather than having it entirely discharged. However, it can give you an opportunity to reorganize under the court’s protection and make plans on how to ultimately deal with the debts.
Find Out the 10 Common Questions About Bankruptcy with Colorado Bankruptcy Lawyers. What Debts are Discharged in Bankruptcy? Unsecureddebts , including credit card and medical bills, as well as some judgments or past taxes, may be discharged. We recognize that you have many questions and that you want them all answered.
Chapter 7 bankruptcy is a great financial solution for those struggling with debt, especially unsecureddebts. With Chapter 7 bankruptcy, you as the debtor can discharge most unsecured obligations after liquidating nonexempt assets. For experienced bankruptcy lawyers in Indiana, contact Sawin & Shea, LLC.
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