There are two type of bankruptcy for individuals, Chapter 7 and Chapter 13. Chapter 7 is for people who cannot afford to pay their bills and do not have a lot of property. Chapter 7 is not a restructuring, it is a complete elimination of all debt and gives the debtor a fresh start.
Common Restructuring Misconceptions
Chapter 13 bankruptcy is a restructuring of debt, or more often called a reorganization. Chapter 13 is most often used for people who have fallen behind on their mortgage and cannot catch up, but still wish to keep the home. Chapter 13 automatically allows a person to prevent foreclosure, resume paying the monthly mortgage payment and pay off the mortgage arrears over a period of 3 to 5 years.
Contact an Experienced Attorney
If you have any questions about Chapter 7 or Chapter 13 bankruptcy, call us today for a free consultation. We are experienced, convenient and affordable and have helped more Marylanders file bankruptcy over the past 20 years.