LAW OFFICES OF
Chapter 7 Bankruptcy (straight bankruptcy aka fresh start )
Chapter 7 is sometimes referred to as “straight bankruptcy.” There is no repayment plan with a Chapter 7. The advantage is that it’s usually over within about four months. Attorney fees are also lower than with a Chapter 13 because there is less work to be done.
Chapter 13 Bankruptcy (reorganization)
Chapter 13 is a payment plan bankruptcy, also called a “reorganization” bankruptcy, or a “wage earner” bankruptcy. If you have enough to repay at least some of what you owe to your creditors, the bankruptcy law requires you to do so. How the system determines who has enough money and how much has to be paid back is the rest of the story. Under certain circumstances, the only way to get your debts discharged is to file a Chapter 13. Chapter 13 stops foreclosure on your home and allows you time to repay the arrears over a period of time.
Creditor Negotiation (maybe avoid bankruptcy?)
This actually isn’t a bankruptcy service at all; in fact, it is usually done to avoid bankruptcy. This is simply working out a settlement agreement with your creditors. However, this option usually requires a lump sum to be paid to creditors. Also, there are tax implications to this approach which must be evaluated carefully before making any decisions or payments.
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