Chapter 7 bankruptcy is a process provided by United States federal law which entitles you to a fresh start. Chapter 7 may eliminate most kinds of unsecured debt. Some examples of unsecured debts include credit cards; most personal loans; medical bills; judgments resulting from car accidents; and repossessed vehicle deficiencies. In addition to getting rid of your debt, you can typically keep most, if not all, of your property. As long as your automobile and mortgage payments are current, and there is no significant equity in your property, then there should be no problem making the arrangements for you to reaffirm the debt. Keep your home, keep your car, keep your personal belongings, but eliminate your debt – that is our ultimate goal. Hemming & Associates may be able to use Chapter 7 to stop creditor harassment, stop garnishments, end or suspend lawsuits, and eliminate repossession debt.
Chapter 13 is an interest-free debt repayment plan used to consolidate your debts. Payments are to be made over a 3 to 5 year period. While you are securely within your Chapter 13 debt repayment plan, your creditors cannot collect from you. Furthermore, your creditors are must adhere to the terms of the plan. It is important to note that you must be employed or have a consistent source of income, in order for the Court to approve your Chapter 13 repayment plan. In other words, you must be able to afford your monthly living expenses and consolidation payments. A Chapter 13 repayment plan is an effective tool to stop foreclosure, prevent vehicle possession, consolidate student loans, and protect co-signers.