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Bankruptcy Chapter 7 vs 13: Which Is The Best Option?

Debt Free Colorado

Additionally, not all unsecured debt is dischargeable under Chapter 7. The means test decides who can seek debt relief. Short foreclosure protection – When your home is faced with foreclosure, the automatic stay is not in effect indefinitely. While debt is not eliminated , it is significantly reduced.

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What Is the Difference Between Chapter 7, 11, and 13 Bankruptcies?

Credit Corp

It’s typically a good idea to consult an experienced bankruptcy lawyer before you file a bankruptcy petition. Bankruptcy does have some benefits, such as potentially putting a stop to wage garnishments or foreclosures. So, talk to a lawyer and get the information you need to make the best decision in your case.

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10 Common Questions About Bankruptcy

Debt Free Colorado

Find Out the 10 Common Questions About Bankruptcy with Colorado Bankruptcy Lawyers. For instance, it may permit the restructuring of debts due to “secured” creditors, or creditors who have an interest in assets like a mortgage or a car loan, but it typically won’t abolish those debts.

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How Often Can I File for Bankruptcy?

Sawin & Shea

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.

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How Often Can I File for Bankruptcy?

Sawin & Shea

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.