What are the differences between Chapter 7 and Chapter 13?
- –You will repay most of your debts in a Chapter 13 before discharge. However, in a Chapter 7 bankruptcy, repayment of your debts is only required in special circumstances.
- -A Chapter 13 lasts 3-5 years depending on your income. Whereas, a Chapter 7 bankruptcy filing is usually much faster, about 3-5 months.
- -Chapter 13 Bankruptcy allows you to include arrearages on expenses such as your car, mortgage, and child support into your plan.
- -The filing fee for a Tucson Chapter 7 is $335. Fees for filing a Chapter 13 is $310. Keep in mind, attorney’s fees are typically much higher in a Chapter 13.
- -Some debts are dischargeable in Chapter 13 bankruptcy but not Chapter 7, such as junior mortgages on your home.
How does Zero Down Bankruptcy work?
Zero Down Bankruptcy is a payment plan option available for qualifying Chapter 7 filers. Instead of paying for your bankruptcy up front, it allows you to pay both your filing fee and your attorney’s fees in affordable monthly installments after your case is filed- after extra expenses like wage garnishments have been stopped. Plus, your payment plan can be up to 12 months post-filing and you will be charged no interest. Also, payments will be credit reported, helping your score rise faster if you make your payments. Contact our Tucson bankruptcy lawyer today.
We are able to offer Zero Down Bankruptcy because of a process known as “bifurcation,” or splitting your case into two parts. Additionally, we will first file a skeleton petition that includes only minimal information. Whereas, information like your income and contact information. Plus, any debts incurred up to that date will be discharged. The court gives us two more weeks to submit the rest of your petition. Debts incurred between the skeleton petition and the full petition filing (i.e., our legal work on your case) will not be discharged.
“The Automatic Stay” Protection in Chapter 7 and Chapter 13 Tucson Bankruptcies
The Automatic Stay is a protection provided by Chapter 7 and Chapter 13 filers alike. Once your petition has been filed, the Automatic Stay prevents your creditors from garnishing your wages, repossessing your vehicle, and foreclosing your home. Additionally, the Stay provides continued protection until your bankruptcy case is dismissed or discharged.
The Automatic Stay is only a temporary protection as it applies to some debts. Thus, if you are being garnished for a non-dischargeable debt such as child support, garnishment will resume once your case has been completed. However, garnishment for debts such as credit cards will not resume. Thus, if you are behind on car or house payments, you will need to resolve the past-due balance before your case is discharged in a Chapter 7. Also, if this isn’t feasible, a Chapter 13 allows you to pay your arrearages over the course of your 3-5 year repayment plan.