When you have no assets Chapter 7 bankruptcy may be your best choice but when filing Chapter 13 bankruptcy you have the ability to maintain assets that are non-exempt as long as you comply with the Chapter 13 terms and conditions. The main danger of liquidation is the equity you may have in your home. Read on to learn more.
When you have equity greater than the limit of the exemption, the property can be protected but is likely to be liquidated should you file for Chapter 7 bankruptcy. If your state permits federal exemptions to be utilized it can protect just over $25,000 worth of equity. In a chapter the value of your home that is non-exempt becomes part of the estate for bankruptcy permitting the trustee to sell the home and distribute the funds to those owed money.
Chapter 13 bankruptcy is deal when a person does not qualify for Chapter 7 or they have assets in need of protecting. Chapter 13 works like a debt consolidation.
A Chapter 13 case will permit you to make payments to all creditors and you can save your home from foreclosure by maintaining the payments. Another advantage is you will only be required to pay a certain percentage of your debt. For example, if you were ordered to pay ten percent, the other 90 percent will be discharged on completion of the case.
Depending on your assets an income, a Chapter 13 bankruptcy may be best for you especially if you have non-exempt assets you wish to protect and maintain.
Speak With Our Bankruptcy Lawyers In Phoenix & Scottsdale
Canterbury Law Group should be your first choice for any bankruptcy evaluation. Our experienced professionals will work with you to obtain the best possible outcome. You can on the firm to represent you well so you can move on with your life. Call today for an initial consultation. We can assist with all types of bankruptcies including Business Bankruptcy, Chapter 7 Bankruptcy, Creditor Representation, Chapter 5 Claims, Chapter 13 Bankruptcy, Business Restructuring, Chapter 11 Bankruptcy, and more.
*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.