BANKRUPTCe.COM - Debt Solutions

Pay Off	From Only
$15,000.00	$55/Month
$20,000.00	$75/Month
$30,000.00	$105/Month
$50,000.00	$185/Month

*Above examples represent minimum payment available for typical CH 13 plan filed in Middle District of Florida. Results may vary depending on your individual circumstances.

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What is Bankruptcy?

Bankruptcy is a legal process which allows a person (a “Debtor”), who owes more money than he or she can currently repay, to either (1) repay a portion of the money over time under Chapter 11, 12, or 13, or (2) have the entire debt forgiven (“discharged”) under Chapter 7. Under Chapter 7, a Debtor may be required to surrender assets to a trustee. Bankruptcy is also available to businesses, corporations, and partnerships. Even municipal governments can file bankruptcy (under Chapter 9). After a Debtor has filed a case (i.e., “petition”), creditors must stop all collection efforts against the Debtor for a period of time, unless they get permission from the bankruptcy court to continue. This protection from collection efforts is referred to as the “automatic stay.” The Bankruptcy Code and Federal Rules of Bankruptcy Procedure determine which chapter one is eligible to file, which debts can be eliminated, how long repayment must continue, which possessions can be kept, etc. A Debtor must abide by these federal laws and rules.

Chapter 7 is the most common form of bankruptcy, and is usually used to discharge, or ‘wipe out’, your unsecured debt such as credit cards; medical bills; most personal loans; judgments; deficiencies on repossessed property, etc.

Chapter 13 is usually used if you are seeking to protect property such as a home, boat or automobile from collections and repossession. Chapter 13 requires you to have some regular source of income, and affords you an opportunity to repay any delinquent debt amounts over a 3 to 5 year period, while you are entitled to keep possession of the property you are seeking to protect.