How have the Bankruptcy laws changed?

The reforms enacted in October of 2005 were designed primarily to prevent abuses. For the vast majority of Chapter 7 filers (liquidation of debt) these changes will not affect their ability to gain a fresh start.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 is a liquidation of debt, excluding debts for taxes, student loans, intentional
acts (liabilities due to fraud, embezzlement, due drug and alcohol induced acts, etc.), and
support obligations, to name a few. Chapter 13 is a 3-5 year repayment plan which allocates debt repayment from income that exceeds reasonable living expenses.

Will I be able to keep my house or my car?

In most cases, yes. It depends on how much value it has over what you still owe on it.
If the value is less then you can usually retain the property or car as long as
payments are kept current. If there is significant value beyond what you owe on
it (equity) then it needs to be evaluated.

What about my pension and/or retirement accounts?

Most retirement accounts are fully exempt.


This is a debt relief agency. We help
people file for bankruptcy relief under
the bankruptcy code.

This site is intended to provide general
information only. No advice from this site
should be construed to apply to your situation
nor should you act upon the information
without consulting a licensed attorney.  Any
phone calls, emails,  initial consultation, or any
other communication do not create an attorney-
client relationship – that will only occur when a
written agreement is signed.

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