What Should You Know About Chapter 7, 11 And 13 Bankruptcy?
Depending on your situation, there are different kinds of bankruptcy that might apply to you. You might file a liquidation bankruptcy (Chapter 7) or a planned bankruptcy (Chapter 11 or Chapter 13). Below are some of the key points about these types of bankruptcy. The attorneys at Wampler & Souder, LLC, can also discuss these with you in an initial consultation .
Choosing Chapter 7 Bankruptcy
Also known as liquidation bankruptcy, this bankruptcy gets rid of all dischargeable debt. The vast majority of all debt is dischargeable. However, bankruptcy does not necessarily get rid of liens on houses and cars. Thus, sometimes secured debt payments have to be made such as house and car payments if you want to keep that property.
Otherwise, as long as you can exempt your property, you can keep it. The vast majority of people filing a liquidation bankruptcy can keep all their property.
Choosing Chapter 11 Or Chapter 13 Bankruptcy
Sometimes called a planned bankruptcy, this type of bankruptcy is filed in order to permit some or all debt to be repaid through a plan — a written document proposing the amount and frequency of payment.
Chapter 13 bankruptcies and Chapter 11 bankruptcies are examples of planned bankruptcies. People may file this type of bankruptcy for a number of reasons. A few of these include:
- To catch up on car payments, house payments, or other secured debt
- To eliminate liens created by second, third or fourth mortgages
- To get rid of or discharge some debts that cannot be discharged in Chapter 7 or liquidation case
- Because income exceeds expenses
- Because income exceeds means testing thresholds (amounts set by law)
- Because the value of property exceeds exemptions
Contact Us Today For A No-Risk Consultation
Contact Wampler & Souder, LLC, for more information and a bankruptcy consultation with a lawyer. Call us at 301-732-7675 or email us your contact information to get started. We are available to meet in Frederick, Silver Spring or Upper Marlboro.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.