Bankruptcy Attorney Appleton WI Helbing Law

APPLETON, Wis. - June 15, 2017 - PRLog -- Bankruptcy Attorney Appleton WI Helbing Law

Bankruptcy code is similar to a book in a library.  All the titles in the United States Code, the federal statutes, are numbered; the bankruptcy code is Title 11. Just as in most books, the bankruptcy code has chapters.  For small businesses and consumers, the Chapters 7 and 13 are of the most interest and concern.

Chapter 7 is entitled Liquidation.  Under chapter 7, a debtor is required to relinquish all their assets to a person called a trustee. The trustee's task is to liquidate the assets for the benefit of the debtor's creditors.  Most consumer bankruptcies are determined to be "No Asset", meaning that all of the assets either have little equity, or are exempt under state or federal law.  So, most consumer Chapter 7 bankruptcies do not result in the loss of any assets.  Rather, the debtor simply receives a discharge of most of their unsecured debt.  A discharge means the elimination of debt.

Because of this, Chapter 7 is now only available to debtors with very little or no disposable income.  The majority of Chapter 7 debtors receive a discharge.  As opposed to having their cases dismissed or switched to Chapter 13, the overwhelming majority of people who file Chapter 7 cannot afford to repay their debts.  To determine which chapter you may qualify for, bankruptcy lawyer (http://www.helbinglaw.com/) Appleton WI Helbing Law is a good first choice.

Chapter 13 can provide relief for those people who can afford to pay at least some part of the debt to their creditors, whereas they may pay nothing in a Chapter 7 bankruptcy.  Chapter 13 is called entitled Individual Debt Adjustment.  It essentially amounts to a repayment plan.  Under Chapter 13 a debtor need only pay unsecured creditors what he or she can afford to pay, as long as they receive at least what they would have in a Chapter 7. No negotiation is required and no interest is charged and balances are fixed at the time of filing.

Chapter 13 is also a great way to help homeowners stay in their homes.  Over the life of the plan the Chapter 13 plan is used to repay the amount outstanding on a mortgage.  Most mortgage companies will allow a very short repayment plan, usually four to six months, so the sixty months allowed by Chapter 13 can be a lifesaver.

And lastly, Chapter 13 may be used to repay tax debt that is not dischargeable in a Chapter 7.  Under Chapter 7 income tax debt that was due more than 3 years before filing will be erased. This is as long as the returns were filed more than two years before filing.  All other tax debt is not discharged, though, and Chapter 13 lets a debtor repay that over five years.  In every Chapter 13, the debtor must be able to afford the monthly payment.

Whenever you are having difficulty with debts, you should contact a lawyer who handles this area of law, preferably on a free initial basis.  For a top bankruptcy lawyer Appleton WI Helbing Law (http://www.helbinglaw.com/Practice-Areas/The-Bankruptcy-P...) is highly recommended.

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