Loan and Equity Help

Chapter 7 bankruptcy is a liquidation proceeding.  If you have some non-exempt assets, they’re sold by the Chapter 7 trustee and the proceeds are distributed to your creditors according to the priorities established in the Bankruptcy Code.  In nearly all consumer cases, all assets are exempt.  There are, therefore, no assets to liquidate and no money to give out to creditors. Chapter 7 is normally the simplest and fastest form of bankruptcy.  It’s available to individuals, married couples, corporations and partnerships.

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Chapter 13 bankruptcy law is at times called reorganization bankruptcy.  It’s uniquely different than Chapter 7 bankruptcy. In a Chapter 7 bankruptcy nearly all of your debts are cancelled out. But, you must forfeit any belongings that aren’t exempt from seizure by your creditors. Under Chapter 13 bankruptcy law, you aren’t required to forfeit any worldly items. But, you’re expected to utilize your income to pay off some or all of what you owe your creditors. Your payments to creditors are made over time, generally from three to five years. The time parameter depends on the amount of your debts and income.

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