Posts Tagged ‘chapter 13’
Bankruptcy: Chapter 7 vs. Chapter 13
January 7, 2011 | 
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The law office of DeMARCO•MITCHELL, PLLC specializes in Chapter 7 bankruptcy and Chapter 13 bankruptcy law. To some, that says a lot. To many, it’s like hearing a foreign language.
While some may hear about Chapter 7 bankruptcy and Chapter 13 bankruptcy on TV or the radio, defining both bankruptcy options may be an entirely different subject. Our Plano TX attorneys want you to understand the difference between the two options and, if bankruptcy is the route you must take, choose your option wisely.
Chapter 7 bankruptcy, also known as straight bankruptcy, gives a debtor a fresh start by granting a discharge in exchange for the sale all non-exempt asses owned. The funds from those assets are distributed within a debtor’s creditors.
Chapter 13 bankruptcy requires debtors to put together and follow a debt repayment proposal for all creditors over a period of three to five years. A debtor is allowed to retain all assets in this case. A debtor is required to make monthly payments to a bankruptcy trustee during those three to five years, and the trustee distributes payments to the creditors.
If bankruptcy is an option you must take, our bankruptcy law experts are more than willing to answer all of your questions. They can further explain the differences in the two bankruptcy options and will offer proper and thorough advice regarding which option suits you best. Call our Plano attorneys today, or contact us online for more information.
Posted in Bankruptcy, Chapter 13, Chapter 7 | 
Tags: bankruptcy, chapter 13, chapter 7, debtor, differences, law | 
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How Your Bankruptcy May Affect Co-Debtors
You may have passed the means test and are ready to proceed with your Chapter 7 Bankruptcy, but have you thought about your co-signer or your spouse? Bankruptcy affects those around you in ways you wouldn’t anticipate. If you file Straight Bankruptcy, or Chapter 7 Bankruptcy, and your spouse fails to file as well, your spouse may still be liable for all debts owed to creditors. If you are divorced, and the debt was incurred during the marriage, your ex-spouse may still be held liable as well. Further, under Chapter 7 Bankruptcy, Co-Debtors (Co-Signers / Guarantors) are liable for all debts owed to a specific creditor.
However, under Chapter 13 Bankruptcy, a co-debtor may receive an automatic stay, if the debt was incurred for a domestic (e.g. household) purpose. If the debt is related to business, the co-debtor is not protected and may be held liable for the debt. Still, filing for Chapter 13 Bankruptcy does not relieve the co-debtor of debt obliged to the creditor. The stay is a mechanism for protecting the co-debtor from collection actions while your Chapter 13 Bankruptcy is pending. And so long as you meet your debt payments under Chapter 13 Bankruptcy; your co-debtor should remain unharmed.
This blog post is by no means a comprehensive interpretation of co-debtor obligations. Should you have any questions regarding your bankruptcy proceedings, consult your Dallas TX Bankruptcy Attorneys at DEMARCO•MITCHELL, PLLC. Our Dallas TX bankruptcy lawyers will provide the personal attention your legal needs require. Contact us online, or call (972) 578-1400.
Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Co-Debtor | Tags: attorneys, bankruptcy, chapter 13, chapter 7, co-debtor, debt, debtor, liable, spouse | Comments Closed