Chapter 7 process normally takes about four to six months. A Chapter 13 can last between three and five years.

In a Chapter 7 bankruptcy you may ask that the courts discharge most debts. It generally does not include taxes, student loans, alimony, or child support. In return, the trustee can take any property that you own that is not exempted from collections. It is the attorney’s job to help the debtor protect its assets.

In Chapter 13 cases the debtor request a repayment plan with the bankruptcy court to pay back a portion or all of your debt over a period of time. You lose no property when filing for Chapter 13 because your repayment plan is based off of your current income.

Yes. In order to keep the house and car in a Chapter 7 bankruptcy the house and car must be current.

It will depend on your personal situation. To qualify for a Chapter 7 bankruptcy you must meet with certain income limits and take a credit counseling course. There are some exceptions to the income limits such as individuals who are disabled veterans, reservists called to active duty and members of the national guard as well as filers whose debt is more than 50% non consumer debt (business debt).

You cannot lower your payment in a Chapter 7. In a Chapter 13 you cannot lower the payment but you may be able to remove a second mortgage. This is called “lien stripping.”

The first payment is due 30 days after filing. You must make the payment even if you have selected that the payment be done through wage withholding from your employer. If the employer does not make the payment you must make the payment one of the other ways to the trustee responsible for your case.

You should notify your attorney immediately. The attorney may be able to file a motion with the court to temporarily stop the payments to keep your case from getting dismissed. These motions are time sensitive so your attorney must be notified immediately.

Chapter 7 bankruptcy is known as liquidation because the trustee sells your assets to pay creditors. While you can keep exempt property, such as your home and car, the trustee will sell non-exempt property, like luxury vehicles. On the other hand, filing for Chapter 13 requires you to agree to a repayment plan where you send creditors monthly payments for three to five years. This chapter lets you keep your property while reorganizing your finances. A lawyer will help decide which chapter is right for you.

If you want to discharge your debts by filing for bankruptcy, you can keep certain assets depending on the chapter you choose. Chapter 7 bankruptcy typically lets the debtor keep their home, one vehicle, household goods, tools for work, and other necessities. This way, you won’t be left without a home, household possessions, or a way to get to work. The trustee will sell non-exempt items. If you choose Chapter 13, you can keep your belongings if you keep making payments for the trustee to give to creditors.

The bankruptcy filing process can help you get out of debt since it lets you discharge most bills. However, the bankruptcy court does not allow you to discharge every type of debt. For instance, your bankruptcy filing decision won’t eliminate unpaid taxes, alimony, or child support. So, if you want to file for bankruptcy to get out of paying current or past-due support for your children or ex-spouse, it won’t work. You must keep making payments, though you can request a modification of support if you cannot afford payments after the bankruptcy filing process.

When one spouse initiates a bankruptcy case, the non-debtor spouse might wonder what will happen to their separate property and any community property they own together. According to the bankruptcy code, all property the debtor spouse owns goes into the bankruptcy estate to help pay the debt. But that doesn’t necessarily mean all of it will be taken to pay creditors, since some property in the bankruptcy estate may be exempt or not considered the sole property of the debtor spouse. If you’re a non-debtor spouse worried about losing property, contact a lawyer for advice.