What to Discuss with Bankruptcy Attorney Charles Kania?


Bankruptcy could help consumers who are swimming and debt and need help through the court. For so many people, mismanaged debts can prevent them from making larger purchases such as a home or automobile. They will see their credit scores plummet., and they will get denied for new credit lines.

The Difference Between Chapters

The difference between chapter 13 and chapter 7 is that chapter 13 is a repayment plan and chapter 7 is liquidation. If they choose chapter 13, the claimant will enter into a repayment plan that will take between three and five years to complete. If they choose chapter 7, they are selling their assets to pay off their debts, and they must have enough assets to settle their debts. The court will look at their debt volume and the value of all their assets to decide if chapter 7 is the most suitable choice.

The claimant will need to present details about their income to determine if they qualify for chapter 13. They must provide income statements to show that they have an income that is greater than the median for their household size.

What Protection Do You Get?

An automatic stay provides them with protection against creditors, and they can’t seek legal action against the claimant during the bankruptcy case. In chapter 13, it lasts up to five years. With chapter 7, they have protection for up to six months. However, if the court discharges the debts, they are no longer responsible for the debts as long as they complete all the steps outlined in their claim.

What Can You Expect?

In chapter 13, the claimant will pay the payment, or the court will garnish their wages to collect the monthly payments. The claimant must use all their disposable income to pay off debts, and the court will monitor their income. If the court determines that they are not complying with the terms of the claim, the court can discharge the claim altogether. Claimants that need help contact Bankruptcy attorney Charles Kania for further information now.

Are There Any Restrictions?

Yes, there are restrictions, and the claimant cannot open any new lines of credit while they are in chapter 13 bankruptcy. They can’t get a new credit card, and they cannot borrow money from any lender during the claim.

In chapter 7, they cannot acquire any new assets until after the claim has started, and their existing assets are up for sale. If they get a new asset before this time, the court can seize it to settle their debts. The claimant must comply with all orders in their bankruptcy claim, and they will have to report all their income to court if they are self-employed.

Claimants must start a claim to get approved for bankruptcy, and they must meet certain guidelines when they are accepted. The claimant must comply with all the terms of their bankruptcy, or they could face discharge of the entire claim. Claimants can get more information about the cases by contacting an attorney right now.