The Law Offices of
Kiolbassa, Holmes & Ansong
Getting Back on Track. With rising expenses it is easy to fall into debt. Creditors are becoming more and more aggressive in their collection tactics.
We cannot stop the rising costs, but under certain circumstances we can try to stop wage garnishment, creditor harassment, and the bills.
Chapter 7A Chapter 7 bankruptcy can wipe out certain debts within several months, but a court-appointed trustee can sell your nonexempt property to pay your creditors. You also must have a low income to qualify.
Chapter 13A Chapter 13 bankruptcy allows you to keep your stuff and get on a more affordable repayment plan with your creditors. You'll need to have enough income to afford the payments and be below the maximum total debt limits (currently nearly $400,000 for unsecured debts and $1 million-plus for secured debts).
A court will approve the Chapter 13 repayment plan, which usually lasts three to five years, and your trustee will collect your payments and disburse them to your creditors. Once you finish the plan, the remainder of the unsecured debts is discharged.