Basic Bankruptcy Primer


Chapter 7 Bankruptcy allows individuals to protect a substantial amount of equity while eliminating debt. With this form of bankruptcy, also known as "Liquidation Bankruptcy", our clients can retain the following equity:

  • Vehicles: up to $5000.00 ($10,000.00 for those that are disabled/elderly)

  • Household Goods: up to $3000.00 ($6,000.00 for married filers)

  • Primary Residence: up to $60,000.00 ($90,000.00 for those that are disabled/elderly)

This is the quickest and simplest form of bankruptcy.

Chapter 13 Bankruptcy allows individuals with a reliable income to repay most or all of their debt. Also known as "Wage Earner Bankruptcy", this form of bankruptcy gives individuals the chance to rehabilitate credit.

  • Clients pay a monthly fee to a trustee, who then distributes the funds to their creditors

  • Clients complete plans that range from 36 to 60 months, depending upon the reason for filing

Those who file Chapter 13 Bankruptcy are entitled to all of the Chapter 7 exemptions, but are also allowed to keep the non-exempt property that might be excluded in a Chapter 7 Bankruptcy

Please do not construe this as "legal advice" we can not provide legal advice and only an attorney can provide legal advice

Our work is supervised by a licensed attorney

#bankruptcy #chapter7 #chapter11 #chapter13

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