By law, once a creditor or bill collector becomes aware of a filing for bankruptcy protection, it must immediately stop all collection efforts. A provision of the Bankruptcy Code called the automatic stay prevents bill collectors from taking any action to collect debts. A creditor may be liable for court sanctions if it continues to use collection tactics once informed of the bankruptcy.

Ch 7 · Chapter 13 Bankruptcy · Chapter 7 · File Bankruptcy

When you file a Chapter 13 case, you agree to pay over to the Chapter 13 trustee a portion of your disposable income each month for 3 to 5 years. The disposable income is the money you have left over after your necessary expenses are paid. These payments are used to pay your creditors a agreed-upon percentage of your original debt. Usually, your assets are not affected. Only your future income is paid to the trustee.

Individuals may file Chapter 13 bankruptcy petitions if they (1) reside, have a domicile, a place of business, or property in the United States, or a municipality; and (2) have a source of regular income. Corporations and partnerships may not file a Chapter 13 bankruptcy petition.

If you filed bankruptcy before, your right to a discharge in a succeeding case may be affected.

Chapter 13 Bankruptcy · File Bankruptcy

There are several kinds of bankruptcy.
Chapter 7 – liquidation of credit card debt primarily with the ability to reaffirm secure debts
Chapter 11 – reorganization for businesses and for individuals with excessive debt
Chapter 12 – reorganization for family farmers
Chapter 13 – reorganization for individuals with a regular source of income who want to save their home from foreclosure

Most individuals and couples file either a Chapter 7 case or a Chapter 13 case.

If you choose to file either of these, you are required to take a Debtor Credit Counseling class prior to filing.

Chapter 13 Bankruptcy · Chapter 7 Bankruptcy · File Bankruptcy