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"Chapter 7" Bankruptcy is called liquidation. This is where any assets not protected by exemptions are sold (or liquidated) to pay creditors. For consumers, there generally are no assets to liquidate. Usually, but not always, the home and cars have little equity and can be protected through exemptions. This process usually takes months to complete.
"Chapter 13" Bankruptcy is called debt readjustment. This allows people, who have assets that they want to keep but are not exempt, to catch up on some of the payments while getting out of other debt. This plan allows people to keep homes with a good amount of equity. This process includes a payment program and usually takes years to complete.
Two key aspects of bankruptcy are the automatic stay and discharge. When the petition for bankruptcy is filed, an automatic stay is instituted. That means creditors must stop all legal proceedings and collection actions against the debtor.
The discharge is when the debtor is release from all the unpaid debts. It is the reason to file for bankruptcy.
If you want assistance, legal representation, or just want to know more about Medvesky Law Office, LLC, check out our website at www.medveskylaw.com.
Bankruptcy - A second chance - Medvesky Law Office, LLC
Baffled by Bankruptcy? Facing financial issues? Bankruptcy overview ... http://youtu.be/VjW9v7fq44k?list=PL9RemGXT2U-fjUvjaYbDMPTi2tY71jHAI
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