More Ch 7 and Ch 13

Chapter 7 is used to wipe out as much debt as possible. It does not protect your co-signers or does not guarantee you will keep property that you owe money on as a 13 does. Chapter 7 can be a good way to eliminate most, if not all, of your debt. There are several debts that cannot be wiped out in a Chapter 7. Such as taxes, child support, alimony, and student loans. 
A Chapter 7 is good when the debt you owe is only in your name, or you do not need to protect the co-signer, and is for charge cards, medical bills or personal loans. If you owe for property like a car or furniture then the creditor must agree to let you continue to make payments, if they do not agree then you must surrender the property. Some creditors can be difficult to work with on auto loans. Most Chapter 7 cases are closed and discharged within 5 months of filing.
Our attorney fee for a basic Chapter 7 $950.00, plus the $299 court filing fee and $50 fee for the required pre-filing debt counseling.

Chapter 13 is a 'debt repayment plan' that is administered by the U.S. Bankruptcy Court. Your creditors are put in the repayment plan and are not allowed to contact you after the case is filed. 
Chapter 13 allows you to reduce or eliminate interest, reduce car loan balance, reduce or eliminate charge card debt and many other types of debt. Most Chapter 13 cases usually will  last from 36 - 60 months. The  plan requires that you make monthly payments to the Chapter 13 Trustee. The Chapter 13 Trustee receives your monthly plan payment and disburses it to your creditors. Our Trustees in Atlanta receive and disburse millions of dollars every month on the thousands of metro Atlanta cases they administer. The plan payments are paid by you until the plan is paid out. Under a Chapter 13 some of your creditors may be paid in full and others will not. Some creditors will get interest at a reduced rate and some creditors get no interest.
When your plan is completed you will receive a 'discharge' and the case is closed. The interest and debt that was wiped out in your plan is gone. Debts that cannot be wiped out in a Chapter 7 can still be repaid or maybe even wiped out in a Chapter 13.
Our attorney fees are paid in the Chapter 13 plan with your creditors each month. Most Chapter 13 cases will only require $125 to file the case. ($75 for partial court filing fee and $50 for the required pre-filing debt counseling)

Both 7 & 13 require a $50 fee for the mandatory pre-filing debt counseling. You can do the pre-file briefing online with CCCS-Atlanta and it will take you about 20 - 25 minutes to complete. We will show you how when you come in. We have a link to the website.

We have more bankruptcy information on our Bankruptcy Information page.                     Return to Home Page