Below is some information regarding Bankruptcy…each case can be very specific so if you have questions regarding the process of Bankruptcy please feel free to contact us. Charles Sabo is available to answer your questions personally.

The basic concept behind bankruptcy is to provide those people who are overburdened by debt with a chance for a fresh start. The filing of a bankruptcy case automatically imposes a stay which bars creditors from attempting to collect their debts by making harassing phone calls, filing lawsuits or by any other means. The automatic stay also stops all pending collection activity such as foreclosures which have already been set, lawsuits which have already been filed and garnishments which have already been served. A bankruptcy case is essentially complete when the Court enters a discharge, which wipes out most unsecured debts. Unsecured debts are those for which there is no collateral, such as most major credit cards and medical bills. Certain taxes are also dischargeable. People typically have the option in a bankruptcy case of keeping their home and motor vehicles. For most people there are two available types of bankruptcy cases, Chapter 7 and Chapter 13. Each type of case has certain benefits and which case is best for you depends upon your individual circumstances.

Chapter 7 is a straight bankruptcy case. A chapter 7 case discharges most unsecured debts within approximately 4 months. If you wish to retain your home or motor vehicle, you continue to make the regular payments. If, however, there are mortgage arrears, past due vehicle payments or non-dischargeable taxes, a chapter 7 case does not offer very much assistance. Also, the bankruptcy trustee may be able to take certain of your assets in chapter 7. Chapter 13 is a personal reorganization case. In chapter 13, you propose a monthly payment plan based upon what you can afford which lasts from three to five years. A Chapter 13 case discharges the same debts as a chapter 7 case. The discharge comes at the conclusion of the plan. Chapter 13 is often more beneficial than chapter 7 for people with pending foreclosure sales, motor vehicles which are worth significantly less than the debt against them, substantial tax liabilities or assets which they would lose in a chapter 7 case. Chapter 13 stops a pending foreclosure sale and allows as long as five years to make up past due payments. Chapter 13 allows you to keep your motor vehicle and pay the lesser of the value or debt. Chapter 13 allows up to five years to pay past due taxes while discharging penalties and stopping interest. Finally, bankruptcy trustees do not take any assets in chapter 13.