A chapter 7 bankruptcy is the form of bankruptcy that most consumers file. Its purpose is to eliminate overwhelming debt, which may include credit card debt, bank loans, tax debts, medical bills, most court judgments, and deficiencies on repossessed vehicles. The debts that are not eliminated in a chapter 7 bankruptcy include, child support and alimony or spousal maintenance, student loans, any debts obtained through fraud (if your creditor raises an objection).

A Chapter 13 bankruptcy is a type of personal financial reorganization used by individuals to pay all or a portion of their debts over a period of 3-5 years using their current income.

If you are behind on your mortgage you can pay the arreage back over a period of up to 5-years.

You may be able to eliminate or "strip off" your 2nd and/or 3rd mortgages.

If your vehicle was repossessed and has not been sold yet, you may be entitled to get your car back.  Once you file for Chapter 13 your lender must return the vehicle to you - immediately! 

You may also be able to reduce the interest rate and/or "cram down" the balance of your auto loan to the value of the vehicle and take up to 5-years to pay off the new balance regardless of how much you owe on the balance of the loan.  Click HERE for more info.

You may be able to eliminate tax debts and tax liens filed against your property, or at the very least, stop interest and penalties and take up to 5-years to pay your overdue taxes.

Student loans; generally student loans are not dischargeable.  However, you can stop the collection process and late fees.

The most important thing about a chapter 13 case is that it will allow you to keep valuable property - especially your home and car - which might otherwise be lost, if you can make the payments which the bankruptcy law requires to be made to your creditors.

Upon successful completion of your Chapter 13 plan payments you will receive a discharge similar to that received by a debtor in a Chapter 7 case.

steve@strifflerlaw.com  By Steven Striffler

YOU MAY HAVE THE RIGHT TO RECOVER MONEY FROM YOUR CREDITORS OR COLLECTION AGENCIES WHO HAVE HARRASED YOU CONCERNING YOUR DEBTS

Some debt collectors routinely violate the provisions of the Fair Debt Collections Practices Act (FDCPA) and/or Massachusett law, which gives you certain rights and prohibits certain methods of attempting to collect debts.

If the Act has been violated, you may have the right to recover money damages.

We would be happy to evaluate whether you have a case against a collection agency.  Please bring ALL LETTERS OR COMMUNICATIONS which you have received from collection agencies with you when you come for your appointment.

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