Individual Debt Relief

You may have heard of a "Chapter 7" or a "Chapter 13" bankruptcy. These chapter numbers refer to the Federal Bankruptcy Code. Michael H. Schwartz, P.C., will tell you which Chapter is best for you.

The two most commonly filed types of bankruptcy cases for individuals are Chapter 7 and Chapter 13.

Chapter 7 is by far the most popular type.  Chapter 7 is designed for people who have debt and do not have assets that can be sold by the Court.  For example, if you have a car and a loan and the car is not worth more than $2,400 above the loan, you will not lose your car in Chapter 7 and you will get to wipe out your debts.

Chapter 13 on the other hand is designed to stop foreclosures. In Chapter 13 you will get up to 5 years to pay back any missed mortgage payments.  You can also use Chapter 13 to pay back some of your debt in the unlikely event that you do not qualify for Chapter 7 or have assets you would lose in Chapter 7. No assets can be sold in Chapter 13 unless you want to sell them (or don’t make payments on loans secured by the asset).

To arrange for a free initial consultation with a NY bankruptcy lawyer at Michael H. Schwartz, P.C., call us toll-free at (800) 666-9743 (800-On My Side) or contact us online.

Michael H. Schwartz, P.C.
One Water Street
White Plains, NY 10601
Phone: (914) 997-0071
(800) 666-9743
(800) On My Side
Fax: (914) 997-0536

< Back to Bankruptcy