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Note: This information is not legal advice and is meant
to give you an overview of personal bankruptcy. If you have questions about how
we may help you avoid foreclosure, please call us at 1-800-800-8538.
If you have specific legal questions about bankruptcy, please consult your attorney.
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| Bankruptcy Types |
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| Bankruptcy types for individuals are classified as either Chapter 7 or Chapter 13.
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What is Chapter 7? |
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| Chapter 7 bankruptcy is a process by which most unsecured debts can be eliminated.
It is primarily for people who wish to completely start over. It is often referred to as
"liquidation" because the trustee may sell the debtor's non-exempt assets for the benefit of creditors.
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What is Chapter 13? |
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| Chapter 13 bankruptcy is a process by which the debtor pays creditors via a payment
plan administered by the bankruptcy court. It is primarily for people who want to pay their
debts, but just need some extra time to catch up due to some temporary issue. With Chapter 13,
debt payments are reorganized into payments made to the trustee for the benefit of creditors.
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Bankruptcy and Property |
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Will bankruptcy stop foreclosure? |
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| Bankruptcy can temporarily stop foreclosure by means of a stay. The debtor is basically
given a brief time of shelter from foreclosure to catch their breath, so to speak. They are expected
to bring their mortgage current and make regular payments. If payments aren't made, the creditor can
request that the stay be lifted. If granted by the bankruptcy judge, the creditor may resume foreclosure.
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Can I sell my property if I've filed for bankruptcy? |
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| Many people in bankruptcy sell their property in order to avoid foreclosure. In general,
a sale may be accomplished via the normal paperwork required for a sale plus some additional paperwork
filed with the bankruptcy court.
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| To find out if we can help you avoid foreclosure,
call us at 1-800-800-8538. We would like to help.
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