The potential benefits of bankruptcy depend on a person or married couple’s circumstances. Filing Chapter 7 or Chapter 13 bankruptcy stops most lawsuits and most other types of creditor collection activities including most garnishments (there are limited exceptions such as on-going child support and court fines) and repossessions of your property. Chapter 13 bankruptcy permits those who are eligible for Chapter 13 bankruptcy to propose a reorganization and repayment plan that can stop and prevent home foreclosure, cancel sheriff’s sales of real estate, possibly eliminate second mortgages, reduce auto installment payments and provide a way to repay other debt such as taxes and student loans. Chapter 13 bankruptcy may be an option to stop home foreclosures and permit a homeowner to catch up missed mortgage payments over time. Filing a Chapter 13 bankruptcy stops a scheduled Sheriff’s sale. In a Chapter 13 it is possible to propose a repayment plan that will protect a vehicle from repossession. Generally speaking, this benefit is not available when a Chapter 7 bankruptcy is filed. It is therefore usually advisable that payments on vehicles should be current at the time a Chapter 7 bankruptcy is filed. Filing a bankruptcy, either a Chapter 7 or 13 bankruptcy case halts creditor collection efforts, including a pending lawsuit, which is simply a step in the debt collection process. Debts in court or even debts that have already gone to judgment can be resolved/eliminated through bankruptcy. In most instances filing bankruptcy will stop a wage garnishment. The exception limited exceptions include child support, some payments on tax debt, which may only be delayed or temporarily halted by filing Chapter 7 bankruptcy or orders of restitution. The benefits of bankruptcy, and specifically the potential benefits of Chapter 7 versus the potential benefits of Chapter 13, are unique to each individual or married couple’s circumstances. Only after a thorough discussion, including an analysis of your unique situation, can the possible benefits of a bankruptcy and the specific benefits of Chapter 7 versus Chapter 13 be determined. This is one reason why at Kinkade & Associates we take the time to get to know you and your circumstances. We take the time to discuss and develop the appropriate strategy to provide you with relief from your debt.
Kinkade & Associates, PC, 123 NW 4th Street Suite 201, Evansville, IN 47708 812-434-4909 PHONE 812-434-4831 FAX