Chapter 7 & 13

Know the Different Types of Bankruptcy

Chapter 7 — Woman Calculating Debt in Aiken, SC
End those harassing phone calls from creditors by taking control of your debt with bankruptcy attorney Andrew C. Marine at your side. Millions of people currently have serious debt obligations that affect their ability to provide for their families and enjoy life. You are not alone. Call (803) 649-0875 to schedule an appointment with Andrew C. Marine and take back your life from crippling debt.
Chapter 7 — Woman Calculating Debt in Aiken, SC
End those harassing phone calls from creditors by taking control of your debt with bankruptcy attorney Andrew C. Marine at your side. Millions of people currently have serious debt obligations that affect their ability to provide for their families and enjoy life. You are not alone. Call (803) 649-0875 to schedule an appointment with Andrew C. Marine and take back your life from crippling debt.

Chapter 7 Bankruptcy

Chapter 7 involves a complete liquidation of any non-exempt assets. All your assets that are not protected by federal law are sold by a bankruptcy trustee who then distributes the proceeds of each sale to your creditors in order to pay outstanding debts. In return, your debts are discharged and you are able to start fresh financially.

Chapter 7 Benefits:

Helps those who don’t have the financial ability to make payments under a reorganization plan
  • No more harassment from debt collectors
  • Discharges outstanding debt
  • Stops foreclosure proceedings
  • Ability to negotiate bills with your creditors
  • Give you tools to better manage your debt in the future

Chapter 13 Bankruptcy

Unlike the liquidation procedure of Chapter 7, Chapter 13 involves development of a three- to five-year payment plan and is best when a client currently has or expects to receive wages to make future payments. Chapter 13 also has a couple advantages over Chapter 7. In most cases, you are able to keep your home and Chapter 13 allows for discharge of more types of debt.

Chapter 13 Requirements

  • Petition for a Chapter 13 bankruptcy in good faith
  • Show the petitioner can afford to make the required payments under the reorganization plan
  • Prove that all disposable income is being applied repaying the debt
  • Provide payments through voluntary deductions from wages
  • Make full payment of priority claims
  • Offer to make payments that would provide creditors a greater amount than if the petitioner's assets were liquidated under Chapter 7
  • Pay secured creditors the fair market value of their collateral or negotiate acceptance of the plan
  • Make all mortgage payments and overdue payments owed to the lender
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