Bankruptcy Offers Relief and Protection

Trying to save your home and/or sanity through bankruptcy?  Talk to a local bankruptcy attorney at  Not all bankruptcies are equal when it comes to saving your property.  Sometimes, in order to save a home that has equity in it, debtors resort to filing for chapter 13 bankruptcy protection instead of chapter 7 bankruptcy protection.

Why?  There’s a form for that.  A debtor must demonstrate eligibility for personal bankruptcy protection.  By filling in form 122A-2 or 122C , the debtor shares his financial situation with his attorney and the trustee as well as creditors.  This is called a means test, and it determines whether a debtor can afford to repay his or her debt, or whether the debtor might file for bankruptcy protection. If a debt is collateralized, such as a mortgage loan or car loan, filing a chapter 7 bankruptcy may wipe out the debt liability, but the creditor has the right to reclaim the property, through foreclosure or repossession.  There are some exemptions, which can allow you to retain limited equity in your property and you should ask your attorney.  

Chapter 13 bankruptcy protection helps debtors overwhelmed with their debt load, to work out a manageable repayment plan, while keeping imperative assets such as a home, car and sometimes, a retirement account. The trade off is that those payments delay the fresh start bankruptcy can deliver to debtors and the repayment plan will be tight, making it tough for many to stick to the program long enough to have the debt discharged.  If the debtor can stick to the plan, the payments are still better than before the bankruptcy was filed and the creditor calls stop while in the bankruptcy, and following the discharge.  If you miss your bankruptcy payments, the trustee can dismiss the case removing protection offered by the plan.

Choosing the right bankruptcy plan can be difficult, in a situation that is already tough. can match you to a local attorney who can walk you through the decision process to a brighter tomorrow.

*article is meant for informational purposes only and is not intended to be legal advice.