Which Chapter Should I File?

Sometimes you may not know whether you should file a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy.  Here are some of the differences
​Chapter 7 Bankruptcy
Chapter 7 is a liquidation bankruptcy that wipes out most of your general unsecured debts such as credit cards and medical bills without the need to pay back balances through a repayment plan. To qualify for Chapter 7 bankruptcy, you must meet income requirements. If you make too much money, you’ll have to file under Chapter 13 bankruptcy (discussed below).
When you file for Chapter 7, an order called the “automatic stay” immediately stops most creditors from pursuing collection efforts. Also, a bankruptcy trustee is appointed to administer your case. In addition to reviewing your bankruptcy papers and supporting documents, the Chapter 7 trustee’s job is to sell your nonexempt property (property that you can’t protect with a bankruptcy exemption) to pay back your creditors. If you don’t have any nonexempt assets, your creditors receive nothing.
While Chapter 7 bankruptcy works well for low-income debtors with little or no assets, it can also work for filers whose discharged debt exceeds the value of the property sold—especially if the trustee will apply the funds to nondischargeable debt, such as income tax or support arrearages.
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Chapter 13 Bankruptcy
Chapter 13 is a reorganization bankruptcy designed for debtors with regular income who have enough left over each month to pay back at least a portion of their debts through a repayment plan. Even though most Chapter 13 filers make too much money to qualify for Chapter 7 bankruptcy, many debtors choose to file for Chapter 13 bankruptcy because it offers many benefits not available in Chapter 7 (such as the ability to catch up on missed mortgage payments or strip wholly unsecured junior liens from your house).
In Chapter 13 bankruptcy, you get to keep all of your property (including nonexempt assets—however you’ll have to pay creditors an amount equal to the value of your nonexempt property). In exchange, you pay back all or a portion of your debts through a repayment plan (the amount you must pay back will depend on your income, expenses, and type of debt).
Typically, Chapter 13 bankruptcy is for debtors who:
  • don’t qualify for Chapter 7 but need debt relief (for instance, to lower credit card payments, stop litigation, or prevent a wage garnishment)
  • have nondischargeable debts such as alimony or child support arrears that they’d like to pay off over three to five years, or
  • have fallen behind on a house or car payment and want to get caught up on missed payments and keep the property.

How Bankruptcy Works

Some of the interesting benefits that you will get with the bankruptcy program are
  1. You will not have to deal with the calls from the lender who is trying to harass you
  2. There is no need to worry about the foreclosure on your home because bankruptcy will stop all such actions
  3. You can keep your car, your house, and all your assets
  4. You will get the chance to stop garnishments
  5. There will be no evictions or lawsuits that you will have to deal with
Walker Law Associates can help you get through this intimidating process. We deal with different types of debt cases and will assure to provide you the solution that you have been looking for. You will receive a free consultation before starting on your case. For more information, you should call Jamaal.

Debt relief

With the falling economy and the increasing rate of unemployment, there are many individuals that are juggling credit card and/or other types of debt. They have to deal with so many responsibilities that often they are unable to pay their loan payment or the credit card bill on time. They have the misconception that paying the minimum payment is a good thing and will help them get rid of the debt.
However, they do not know that the interest and late fees will sum up with the debt that they have to pay. In this way, the amount of debt will keep increasing and repayment will become tough.
Walker Law Associates will help you navigate the debt relief path which is the best solution for this issue. If you file for debt relief you will get the chance to reduce the amount that you owe to the creditor and it will make it easier for you to repay the loan in limited time. Without debt relief, you might not be able to pay the loan your entire life. With debt relief, it can only take 2 to 5 years.

Here are some of the interesting benefits that you will get with debt relief program.
  • Jamaal can make sure that your interest rate is lowered or completed canceled
  • Jamaal can make sure the debt will not keep increasing with late fees
  • Jamaal will help you manage your payment schedule so that you will not delay another payment again.
Credit Rehabilitation

Walker Law Associates also offers credit repair services.  Maybe you have certain goals in mind and increasing your credit score will help you attain those goals.  Not only can you have a fresh start, but a new image as well.

Walker Law Associates has years of experience. For more information about our services, you can call Jamaal.  901-295-4LAW

Why should you call Jamaal?
  • When debt is piling up
  • When facing foreclosure
  • When being garnished
  • When considering filing bankruptcy
Get the relief you deserve…