Yes!  There are two types of bankruptcy cases; Chapter 7 Bankruptcy, Chapter 13 Bankruptcy.

Chapter 7 Bankruptcy

You eliminate most if not all outstanding debt by filing for Chapter 7 Bankruptcy.  This usually consists of forfeiting property to help satisfy those outstanding debts.  But, the good news is as a debtor, you can keep some property that is omitted from being seized during proceedings, called “Exemptions”.

Some unfortunate news regarding property and filing for Chapter 7 is that interest loans such as your car or house will usually always be seized during the process to satisfy those related debts.  If you are behind on payments on items such as these but think you can continue to afford to make the payments, you may want to re-think filing for Chapter 7 Bankruptcy.  Chapter 7, does not prevent the creditors from seizing these properties to pay off your debt.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a great process to help in reorganizing your outstanding debt and creating an adjusted repayment plan to get you out of debt in a reasonable amount of time.  By filing for Chapter 13, you are showing the court you can and will pay your debts in a period of three to five years.  As long as you continue to make the required payments, creditors can no longer harass you and your property cannot be seized.  The minimum payments usually consist of the minimum monthly payments established under the original debt plus an additional percentage.  If you feel that you have the opportunity to catch up on your debt over a three to five year time period, then Chapter 13 Bankruptcy may be the better choice.

Before considering the path to filing for bankruptcy, you may want to contact your creditors to set up a different payment plan.  Depending on the type of creditor and the amount, they are usually open to working with you and will save you on attorney and court fees.

The post Are There Different Types Of Bankruptcies? appeared first on Bankruptcy Attorney | Brown Law Firm.

You may find that there is conflicting information on the internet about the minimum requirements for filing for bankruptcy, but there really is no absolute minimum debt amount required to file.  Many times it is solely dependent on the individual circumstances, but some bankruptcy experts advise to only file if you have a minimum amount of $20,000 in debt.  Of course, the decision is up to you and, but the long term damage to your credit may or may not outweigh or benefit from unloading your debt.  On the other side of things, there may not be a minimum amount required for file, but there is a maximum in filing for Chapter 13 Bankruptcy.

The post How Much Debt Do I Have To Have Before Filing For Bankruptcy? appeared first on Bankruptcy Attorney | Brown Law Firm.

Chapter 7 Bankruptcy can give you the chance to become debt free while keeping your property with some exceptions under state and federal law.  There are some specific exemptions but are more generous under federal law.  Some of these exemptions include:

• $2500 equity or more on your automobile
• $1700 or more equity on your house
• $9000 total on household goods; $425 per item
• $1600 or more on work-related items

You can still continue to receive your additional benefits without penalty, such as:

• Social Security Benefits
• Unemployment
• VA Benefits
• Welfare Payments
• Pension Checks

With your free consultation, The Brown Law Firm can help answer your questions about whether your exemptions can fall under the state for federal.

The post What Property Is Exempt in Chapter 7? appeared first on Bankruptcy Attorney | Brown Law Firm.