The Bankruptcy Basics You Should Know

If you are having trouble maintaining payments or expenses of any sort and are contemplating filing for bankruptcy, you should understand the basics of bankruptcy. When you study individual bankruptcy options and start to learn what bankruptcy is all about, the data you gather will help you make your decision. Though talking with an experienced bankruptcy lawyer will help you make the final choice, knowing the basics will help you to find the right legal professional. When you choose the best lawyer, he or she will be able to help you through the form of bankruptcy you are qualified to file.

The two different types of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 is used usually by people with restricted or no income. There's established levels of personal property that's exempt from being repossessed and sold through the bankruptcy court. Basically, an owned automobile, personal belongings and clothing are certainly not usually lost during bankruptcy.

There's a good possibility you will lose a car or home if you have loans on them, however. In these cases, the lien holder will recover the property that has been used as collateral for the loan. All other unsecured loans (credit cards, medical bills) will be eliminated in a Chapter 7 bankruptcy.

If you want to keep all of your personal property and meet income standards, you may need to consider Chapter 13 bankruptcy. With this type of proceeding, your entire debts will be consolidated into one payment amount. You'll make the payment to the bankruptcy court trustee, who pays your creditors. At first, your payments will be broken down among those with the highest balances. However, all of your creditors are going to be paid.

With a Chapter 13 bankruptcy, any past-due payments to your creditor, including utility bills and medical bills, will undoubtedly be included in the total amount you owe and will also be paid via the bankruptcy plan. Normally, the plan is going to be for a period of 3 to 5 years. If your wages are sufficient to supply basic living expenses and pay the monthly amount of the loan, you can get Chapter 13. If your income doesn't allow the minimum payment to be made, you are going to be rejected and need to file a Chapter 7 bankruptcy.

Bankruptcy isn't a good option for everyone. However, it might be beneficial for others. If you are interested in declaring bankruptcy, working with a qualified bankruptcy lawyer can help you have a much better chance at getting the bankruptcy approved.

Chapter 13 Bankruptcy Explained

Here's another great YouTube video from Miranda Chuck. In this clip, Miranda explains exactly how Chapter 13 bankruptcy works, and who it may or may not be a good fit for. Tom McAvity knows that many people fear bankruptcy because they simply don't have a clear idea of what it is. In order to make a decision about bankruptcy, consumers MUST know EXACTLY what it is and what the positive and negative impacts are. Chapter 13 can stop a foreclosure and allow between 3 to 5 years for consumers to repay a portion of their debt or all of it depending on their unique Chapter 13 bankruptcy filing.

Here's Miranda Chuck discussing Chapter 13 bankruptcy for individuals:



When you are ready for your FREE bankruptcy consultation, contact Tom McAvity at NWDRLF by dialing 1-866-601-1918.

Tom McAvity tells us how Chapter 13 Helps with Foreclosure

Vancouver bankruptcy attorney Tom McAvity can help you stop the foreclosure process on your Salem, Portland, or Vancouver home. This allows you and your family to deal with the other debts that could be contributing to potential financial fallout.

The protections offered by the U.S. Bankruptcy Court are not in any way influenced or dependent upon any agreements with any financial institution holding a mortgage. When you meet the requirements laid out in bankruptcy law, you will be eligible for help without a doubt. Well-seasoned bankruptcy attorney Tom McAvity and the law team at NWDRLF can tell you if you qualify for bankruptcy and what is necessary to begin the process. If your bankruptcy lawyer notices that other options apply, he will tell you during the pre-bankruptcy process. can often let you know during your initial free consultation with

If filing bankruptcy in Washington is the best option for you, you won’t learn about it until you speak to a qualified bankruptcy lawyer, such as Tom McAvity. Chapter 13 bankruptcy in Vancouver can stop the foreclosure process and allows you as many as five years to get current with all of payments you've missed. Chapter 13 can also dramatically reduce – or even eliminate – personal loans and credit card debt so that you have enough freed-up income to make your house payments on your new plan. Consider Chapter 13 before you consider other more costly and less effective approaches.Call NWDRLF today by dialing 1-866-601-1918.