Kamini Fox Helps You Decide The Best Course of Action
The two primary bankruptcy options for the individual consumer are Chapter 7 and Chapter 13 Bankruptcy. At Kamini Fox, PLLC, we will closely evaluate your situation and help you determine which approach will best resolve your current financial concerns and position you for the most secure financial future following the bankruptcy.
Chapter 7 Liquidation Bankruptcy
Chapter 7 bankruptcy is an individual liquidation bankruptcy. All consumer unsecured debt, medical bills, and credit card debt may be discharged during the bankruptcy, and you may no longer be responsible for them. Exceptions to this include student loans, most taxes, and domestic obligations, such as child and spousal support.
For many people, this is the fresh start they have been hoping for. While your credit may be damaged for a period, you no longer have to deal with the weight of overwhelming debt and have the opportunity to correct financial decisions for a more secure future; and you may be able to rebuild your credit in the future.
Chapter 13 Reorganization Bankruptcy
Chapter 13 bankruptcy allows the individual to pay back debt, and in so doing keep the property he or she owns, such as a home. You will be set up with a three- to a five-year payment plan which reorganizes and restructures the debt that you have. This makes your debt and payments more manageable and offers a more comfortable approach to a fresh start.
Both forms of personal bankruptcy result in an immediate court-ordered stop to all creditor calls and harassment, wage garnishment, home foreclosure, and auto repossession.
Chapter 13 bankruptcy allows you to stop a scheduled foreclosure sale, and force your mortgagee to reinstate your mortgage, if you can cure your pre-bankruptcy mortgage arrears over a period of up to 36-60 months through payments to a Chapter 13 Trustee, while you also remit all regular mortgage payments that come due during the Chapter 13 case directly to the mortgagee as and when they come due. In certain circumstances, you can also void judgment liens on your property, and strip down wholly unsecured junior mortgages on your home.
To arrange an initial consultation about a Chapter 7 or Chapter 13 Bankruptcy, please contact us at 516-493-9920.