What Type Of Bankruptcy Should I File?

Individuals typically file Chapter 7 or chapter 13 bankruptcy. The type of bankruptcy filed is determined by the type of relief you are seeking. When a debtor files for Chapter 7 or Chapter 13, their creditors are prohibited by law from attempting to collect any debts from the debtor. This is called an "automatic stay." 

In a standard Chapter 7 bankruptcy all of a debtors unsecured debt-debt without collateral or security-is discharged, or wiped out. The primarily consists of credit card debt, lines of credit, and medical bills. In most cases of Chapter 7 bankruptcy, all property is exempt, and debtors may keep possession of their property. These bankruptcy cases are called no-asset cases.

A Chapter 13 bankruptcy is frequently used by individuals who want to catch up on past due home mortgages or auto loan payments and keep ownership of their car or home. Other individuals use Chapter 13 to pay off debt to the IRS on more favorable terms.  In Chapter 13 a debtor proposes a plan to pay all or part of the debts over a three to five year period. So long as the debtor makes these required payments, he or she will be able to keep their property.

For a free bankruptcy  consultation to learn more about discharging medical debts through Chapter 7, contact experienced Fort Worth bankruptcy attorney Michael P. O'Donnell via phone at 817-732-7590 or 972-819-3861 for a free legal consultation. Michael can also be reached by E-mail at mpolawfirm@hotmail.com.