A Brief Overview of Chapter 7 and Chapter 13 Bankruptcies
The Law Office of Beall, Mitchell & Sullivan, is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The assistance provided to clients may involve bankruptcy relief under the Bankruptcy Code, Title 11 of the United State Code. You can choose the kind of bankruptcy that best meets your needs, although in some circumstances, a person may not be able to file a Chapter 7 bankruptcy if the person’s income exceeds the median income for the State of Kansas or if a previous filing date bars the filing of a Chapter 7. What follows is a brief description of the different types of bankruptcy relief outlined under the Bankruptcy Code.
Chapter 7:
A trustee is appointed to take over your property. Any property of value will be sold or turned into money to pay your creditors. You may be able to keep some of your personal property and possibly real estate. If you own “secured” property that has a lien on personal property or a mortgage on real estate, the Chapter 7 discharge will not cancel that lien or mortgage, although the underlying debt will be discharged. If you want to keep secured property, you generally have to continue paying the debt and will have to sign a reaffirmation agreement, which is an agreement that the debt will not be discharged. If you do not sign such an agreement, then the secured property must be surrendered to the creditor.
Chapter 13:
You can usually keep your property, but you must earn wages or have some source of regular income to qualify, and you must agree to pay part of your income to your creditors. This is done by filing a plan of repayment in your case. The bankruptcy court must approve your plan and your budget, showing that you can pay. A trustee is appointed and will collect the payments from your, pay your creditors, and make sure you live up to the terms of your repayment plan.
Additionally, we offer flat fee bankruptcy services with additional payment plans available to fit the specific needs of every individual client.
Contact Our Bankruptcy Attorneys Today
If you have fallen behind in your payments and feel like you'll never catch up, bankruptcy can help you get a fresh start. Come to our law offices today; call us at 877-823-7420 to schedule your free consultation.
