There are two main paths to bankruptcy debt relief for individuals and their families: Chapter 7 and Chapter 13. Both paths lead to the elimination of debt, the end of debt collector calls, and a financial fresh start.
Many clients ask, “Which one is better than the other”?
The truth is, both options provide comprehensive debt relief with proven results. Both paths stop repossession attempts and foreclosure actions. Both immediately stop debt collector harassment and wage garnishments.
The most important consideration is which path best achieves each client’s individual financial needs and debt relief goals.
What does a Chapter 7 bankruptcy do?
A Chapter 7 bankruptcy is designed to help you quickly get out of debt and achieve a fresh financial start. Generally speaking, a Chapter 7 bankruptcy debt relief makes your bills go away!
In other words, 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.
Do I get to keep my possessions?
Getting rid of your debts does not necessarily mean surrendering the possessions that you’ve worked hard for. In fact, the vast majority of Warner & Warner, PLLC clients don’t lose anything when they file for Chapter 7 bankruptcy debt relief.
What’s our secret? With our years of experience, we are closely familiar with both New York State and Federal exemption statutes – the laws that allow you to keep your possessions.
What about my car?
Generally speaking, those who file for Chapter 7 bankruptcy debt relief can keep their car. If you own your car outright, or are current on your payments, you will most likely be allowed to keep it.
That said, if you are far behind on your payments, you have the option of either surrendering it without financial penalty, redeeming your car for its fair market value, or filing 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.
That said, if you are far behind on your mortgage payments, you have the option of either surrendering it without financial penalty, exploring whether loss mitigation can make your mortgage more affordable, or filing a Chapter 13 bankruptcy plan to get caught up on your mortgage payments.
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 provides the opportunity to restructure your car payment, lower its interest rate, and make it more affordable.
Chapter 13 even gives you the opportunity to make your mortgage payments more affordable through the Court’s loss mitigation process. Through a Chapter 13 “Plan”, you can develop an affordable repayment plan that does not overwhelm your budget – without ever having to talk to a single creditor.
How does a Chapter 13 work?
Chapter 13 bankruptcy debt relief is not difficult to obtain. In addition to preparing a “Petition” for debt relief, a Warner & Warner, PLLC attorney will personally sit down with you to carefully design a “Plan” to repay your creditors – often at lower interest rates and monthly payment amounts. The Plan will reschedule your payments into lower amounts and 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 absolutely save your home and cancel that foreclosure auction. It will stop a foreclosure auction that has been scheduled to take place next month, next week, tomorrow, or even later today!
After your Petition and Plan are filed, you can even 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?
Believe it or not, Chapter 13 debt relief can actually eliminate home equity and/or second mortgage debts. In a Chapter 13 case, you can eliminate home equity or second mortgage debt 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 the car before it is sold at auction. In addition, a Chapter 13 debt relief Plan can be designed to lower your car payments and make it more affordable to own.
Still not sure 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 (518) 451-9388 to schedule your free consultation today!