Especially in hard economic times, bankruptcy is common and never a source of shame. Unemployment, medical problems and divorce are very common contributors. You need to consider seeking the advice of a Chapter 13 bankruptcy lawyer.
Chapter 13 consolidates your debts into one payment that you will make monthly for three to five years. Much debt is discharged, but you can keep more property than you would under Chapter 7. You may not have the choice to use Chapter 7 if you have a steady income that would pay a significant portion of your debts, according to the “means test.”
The main advantage of Chapter 13 bankruptcy may be the possibility of keeping your home. Even if the foreclosure process has begun, an automatic stay puts a halt to foreclosure. In addition, if your home has declined in value below what you owe on your first mortgage, you may be able to “strip” a second or third mortgage and discharge this debt. A similar calculation applies to your vehicle. You should be able to pay the fair market value rather than an amount owed.
Other advantages of Chapter 13 include appearance on your credit report for only seven years, rather than 10 under Chapter 7. Some debts, such as child support owed, cannot be discharged under either chapter.
Speak to a lawyer who speaks plain English. Call the Jacques Law Office, P.C. Mr. Jacques is a highly personable attorney who listens to his clients and is dedicated to helping people like you.
Call us for help with your legal needs. Contact us online or call 208.344.2224 for our Caldwell office or our Boise location.