chapter 7 Bankruptcy
In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property. Some liens, however (such as real estate mortgages and car loans), survive. The value of property which can be claimed as exempt varies from state-to-state. Other assets, if any, are sold (liquidated) by the interim trustee to repay creditors. Many types of unsecured debt are legally discharged by the bankruptcy proceding, but there are various types of debt that are not discharged.

Another aspect to consider is whether the debtor can avoid a challenge by the United States Trustee to his or her Chapter 7 filing as abusive. One factor in considering whether the U.S. Trustee can prevail in a challenge to the debtor's Chapter 7 filing is whether the debtor can otherwise afford to repay some or all of his debts out of disposable income in the five year time frame provided by Chapter 13. If so, then the U.S. Trustee may succeed in preventing the debtor from receiving a discharge under Chapter 7, effectively forcing the debtor into Chapter 13. For more information or to speak with a Bankruptcy Attorney or Debt Negotiation Attorney Contact Us click here, to Inquire online and receive an immediate response click here.

Chapter 13 Bankruptcy
Under Chapter 13, the debtor proposes a plan to pay his creditors over a 3 to 5 year period. During this period, his creditors cannot attempt to collect on the individual's previously incurred debt except through the bankruptcy court. In general, the individual gets to keep his property, and his creditors end up with less money than they are owed. For more information or to speak with a Bankruptcy Attorney or Debt Negotiation Attorney click here, to Inquire online and receive an immediate response click here.

Bankruptcy Advantages
The advantages of Chapter 13 over Chapter 7 include: the ability to stop foreclosures and to have a mortgage that has been accelerated declared reinstated upon bankruptcy plan completion; to achieve a super discharge of debts of kinds not dischargeable under Chapter 7; to value collateral; to bifurcate the security interest of creditors in certain property that creditors are either charging too much interest for, or are over-secured, or both, and in some cases; to prevent collection activities against non-filing co-signers (co-debtors) during the life of the case. For more information or to speak with a Bankruptcy Attorney or Debt Negotiation Attorney click here, to Inquire online and receive an immediate response click here.

Bankruptcy Disadvantages
The disadvantage of filing for personal bankruptcy is that a record of this stays on the individual's credit report for 10 years. During the pendency of a Chapter 13 case the debtor is not pesrmitted to obtain additional credit without the permission of the bankruptcy court. Moreover, creditors may not be willing to risk lending money to such an individual. For more information or to speak with a Bankruptcy Attorney or Debt Negotiation Attorney click here, to Inquire online and receive an immediate response click here.