There are two types of bankruptcy for which consumer debtors may file; these proceedings are outlined in Chapter 7 and Chapter 13 of the Bankruptcy Code. The basic premise of Chapter 7 is that you surrender your non-exempt assets in return for a discharge of your debts. Most consumer debtors do not lose any assets as a result of filing Chapter 7 because of the exemptions provided by the code itself or the State of New Hampshire. When choosing which exemptions to use, it is extremely important to consult with a qualified attorney.
Under Chapter 13 (also referred to as a wage earners plan), a plan is created in which monthly payments are made to a trustee for a minimum of 36 months and a maximum of 60 months. There are many reasons for considering Chapter 13, and consumers who are behind on mortgage payments often pick this option. Under Chapter 13, you have the right to cure the arrearage over a sixty-month period and, in certain situations you also may be able to eliminate second mortgages. You may also pay off debts owed to the IRS over the term of the plan.
If you are considering bankruptcy, please call for a free consultation. Attorney Smith will thoroughly analyze your situation, explain your options, and will provide you with expert legal advice.