Need some info on new bankruptcy laws?

Question

I've heard that with the new laws that you have to pay debt back with adjusted payments, also what's the difference between chapter 7 and 13? I've always had great credit but recently ran into some issues and trying to find out what all my options are. Any advice, info would be appreciated, I really don't want to go this route but I'd like to be informed. Thanks

Answer 1

If you have no foreseable means of paying back your debts then you gotta got the full 9 miles with ch. 7. If you intend to pay them but you're just currently insolvent but want to try to make good on your debts then ch. 13 is the way to go (see below)

Chapter 7 - This type of filing is what most people associate a bankruptcy with because none of the unsecured debts are repaid.  Under chapter 7,  a bankruptcy trustee is appointed and then sells your nonexempt assets.  Your debts are then liquidated with the proceeds from the sales.

Chapter 13 - This filing of bankruptcy is an option for those who want to pay their creditors but simply cannot afford it because of financial hardship. Under Chapter 13, the court requires you to submit a plan for repayment of your debts at a discounted rate for a 3 to 5 year period.  Creditors will require you to show that you cannot afford to pay even half of the debt.  Once you demonstrate that you cannot, creditors are not likely to challenge the discharge.  The judge then approves your plan.  After all payments are made, you receive a discharge from the court.

Answer 2

Chapter 13, which involves a repayment plan.

Chapter 7: where most or all of your debt is wiped out

except for the 19 types of debt that are by law declared to be nondischargeable in a chapter 7 case. The

following list of the most common types of debts are not dischargeable in a chapter 7 case.

(1) Most tax debts and debts that were incurred to pay nondischargeable federal tax debts.

(2) Debts obtaining money, property, services, or credit by means of false pretenses, fraud, or a false

financial statement, if the creditor files a complaint in the bankruptcy case (included here are debts for socalled

luxury goods or services and debts for cash advances made within 60 days before the case is filed).

(3) Debts not listed on the debtor’s chapter 7 forms, unless the creditor knew of the bankruptcy case

in time to file a claim.

(4) Debts for fraud, embezzlement, or larceny, if the creditor files a complaint in the bankruptcy case.

(5) Debts for alimony, maintenance, or support and, if the creditor files a complaint in the bankruptcy

case, certain other divorce-related debts including property settlement debts.

(6) Debts for intentional or malicious injury to the person or property of another, if the creditor files

a complaint in the bankruptcy case.

Chapter 13, which involves a repayment plan.

Answer 3

You can check this website out....www.bcsalliance.com....it's a great site for debt, credit and bankruptcy information. It explains the difference between the two bankruptcies and others, as well as other bk information that you may find useful. This would be a great site for you to look at if you don't want to do the bankruptcy and want to seek out other options. Good Luck!!