There are two main paths to bankruptcy debt relief for individuals and their families: Chapter 7 and Chapter 13. Both paths provide comprehensive debt relief. Both paths lead to the elimination of debt, and will stop repossession attempts, foreclosure actions, debt collector harassment, and wage garnishments. Whichever path you choose, you’ll get a fresh financial start.
But if you’re not familiar with bankruptcy law, you may not know which path is right for you.
Many clients ask, “Which is better for me? Chapter 7 or Chapter 13?”
Our bankruptcy experts will help you decide which path to bankruptcy debt relief is right for you.
We take into account your individual financial needs and debt relief goals.
Chapter 7 Bankruptcy
What does a Chapter 7 bankruptcy do?
Chapter 7 bankruptcy is designed to help you quickly get out of debt and achieve a fresh financial start. Generally speaking, it makes your bills go away!
It erases credit card debts, medical bills, personal loans, and most other unsecured debts. It will even get rid of past-due electric and heating bills. You even have the choice of keeping your house or car, or surrendering either or both without financial penalty.
Can I keep my possessions?
Filing for Chapter 7 bankruptcy debt relief does not necessarily mean surrendering the possessions that you’ve worked so hard for. In fact, the vast majority of our clients don’t lose anything.
We have years of experience working with both New York State and Federal exemption statutes – the laws that allow you to keep your possessions. We’ll put our experience to work for you and help you keep what you’ve earned.
Can I keep my car?
Generally speaking, if you file for Chapter 7 bankruptcy debt relief, you can keep your car. If you own your car outright, or are current on your payments, you will most likely be allowed to keep it.
However, if you are far behind on your payments, you have several options. You can surrender it without financial penalty, redeem it for its fair market value, or file a Chapter 13 bankruptcy plan to get caught up on your payments.
Can I keep my home?
If you own your home outright, or are current on your mortgage payments, you will most likely be allowed to keep it.
However, if you are far behind on your mortgage payments, you have several options. You can surrender it without financial penalty, explore whether loss mitigation can make your mortgage more affordable, or file a Chapter 13 bankruptcy plan to get caught up on your mortgage payments.
Chapter 13 Bankruptcy
What does a Chapter 13 bankruptcy do?
Chapter 13 bankruptcy is designed to help you restructure and get rid of debts. Chapter 13 bankruptcy debt relief is the most effective way to protect your assets and property. It gives you the opportunity to restructure your car payment, lower its interest rate, and make it more affordable.
It also gives you the opportunity to make your mortgage payments more affordable through the Court’s loss mitigation process. With a Chapter 13 “Plan,” you can work out an affordable repayment plan that fits within your budget – without ever having to talk to a single creditor.
How does Chapter 13 bankruptcy work?
Filing for Chapter 13 bankruptcy debt relief is not difficult. In addition to preparing a “Petition” for debt relief, one of our attorneys will personally sit down with you to carefully design a “Plan” to repay your creditors. The Plan will reschedule your payments into lower amounts at lower, consolidated interest rates.
Can I save my home from foreclosure? What if an auction has been scheduled?
A Chapter 13 petition for debt relief can save your home and cancel a scheduled foreclosure auction, no matter when the auction is scheduled. If it’s scheduled for next month, next week, tomorrow, or even later today, filing for Chapter 13 bankruptcy will stop it.
After your Petition and Plan are filed, you can use the loss mitigation process to make your home more affordable by lowering your interest rates and/or principal mortgage payments.
Can Chapter 13 debt relief reduce home equity loan or second mortgage payments?
Chapter 13 debt relief can eliminate home equity and/or second mortgage debts if your property is worth less than your first mortgage balance.
Will Chapter 13 debt relief prevent repossession? What if my car was already repossessed?
Chapter 13 bankruptcy debt relief is so powerful that it can either prevent repossession from happening or retrieve your car if it has already been repossessed.
That’s right! Even if your car has already been repossessed, you’ll have the opportunity to retrieve it before it’s sold at auction. And once you have your car back, a Chapter 13 debt relief Plan can be designed to lower your car payments and make it more affordable to own.
We’ll help you decide which form of bankruptcy debt relief is right for you.
At Warner & Warner, PLLC we specialize in designing Chapter 7 and Chapter 13 bankruptcy debt relief plans that achieve your debt relief goals and obtain a fresh start for you and your family.
Call (877) 405-6232 to schedule your free consultation today!