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
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
Most retirement accounts are fully exempt.
This is a debt relief agency. We help
people file for bankruptcy relief under
the bankruptcy code.
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information only. No advice from this site
should be construed to apply to your situation
nor should you act upon the information
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