Experienced Bankruptcy Attorney Represents Lincoln
Chapter 7 Bankruptcy
Everyone likes a fresh start, and that’s exactly what you’ll get when you file for Chapter 7 bankruptcy, a liquidation process in which a trustee collects all of your assets and sells any that are not exempt. After your trustee sells your assets and pays you for the amount exempted, the net proceeds will then be distributed to your creditors.
Keep in mind that certain debts may not be discharged in a Chapter 7 bankruptcy, including alimony, child support, fraudulent debts, various taxes and outstanding student loans. More often than not, filing for Chapter 7 bankruptcy relief allows you to completely eliminate unsecured bills and credit card debt.
You may also retain secured debts, such as your home and car, by reaffirming those debts. Electing to do so means you’ll be required to sign a reaffirmation agreement, in which case you cannot eliminate that debt again for eight years. It is important to remember that you will still owe that debt and you must continue to pay it down as if you’d never filed for bankruptcy. You must also pay any and all past-due debt obligations if you wish to reaffirm your outstanding debt.
Chapter 12 Bankruptcy
In the state of Nebraska, Chapter 12 bankruptcy provides family farmers personally involved in running their business with debt relief. In order to qualify, however, a majority of your debt and income must be directly related to the farm.
In filing for Chapter 12 bankruptcy relief, you must agree to a 3-5 year plan to repay your creditors using your disposable income, minus operating costs and family living expenses. Secured debts may be reduced to the value of collateral and paid over a period equal to the expected life of collateral or standard banking terms governing estate loans.
A Chapter 12 bankruptcy is viable for family farmers who possess the dedication and wherewithal necessary to comply with the repayment plan and move forward on sound financial footing. Keep in mind, however, that filing for Chapter 12 bankruptcy relief is complicated and time-consuming. Your best bet at securing the future you deserve is to speak with an experienced, compassionate bankruptcy lawyer as soon as possible.
Chapter 13 Bankruptcy
Similar to the terms of Chapter 12 bankruptcy, filing for Chapter 13 bankruptcy relief requires you to establish a 3-5 year repayment plan in which you offer to pay off all or part of the debts using future income. Chapter 13 enables you to prevent your house from being foreclosed on, pay missed car and/or mortgage payments and pay back taxes. Filing for Chapter 13 will also prevent interest from accruing on your tax debt, including local, state and federal taxes. If you can adhere to the terms of your repayment agreement, all of your remaining dischargeable debt will be released upon completion of the repayment plan. Remember, the total amount paid to creditors under the Chapter 13 repayment plan must be equivalent to the amount your creditors would have received if you had filed for Chapter 7 bankruptcy relief.
Chapter 13 bankruptcy is often beneficial for those who wish to maintain secured assets, particularly when they have more equity in the secured assets than they can protect with their Nebraska bankruptcy exemptions. Keep in mind, however, that the majority of Nebraskans who’d simply like to eliminate their crippling debt burden choose Chapter 7 bankruptcy, as it allows them to avoid paying back any of their outstanding debt.