FAQs

Q?

What is a Chapter 7 bankruptcy?

A.

Chapter 7 is a way to legally discharge, or cancel your indebtedness. Chapter 7 gives you a fresh start on your economic life within certain limitations. A person cannot file a Chapter 7 more than once every 8 years and certain types of debts are not dischargeable.   Chapter 7 will stop a foreclosure, but only for 3 months, and a creditor can ask the court for permission to move forward during the bankruptcy case.

Q?

What is a Chapter 13 bankruptcy

A.

Chapter 13 is a form of bankruptcy in which you obtain relief from your creditors and submit a plan to pay your debts over a period of between 3 - 5 years. The law prohibits your creditors from trying to collect from you during the time you are in your Chapter 13 plan. It allows you to catch up or mortgage or tax arrears without penalty.

Q?

What is a tax lien?

A.

A tax lien is a lien imposed by law upon a property to secure the payment of taxes. A tax lien may be imposed for delinquent taxes owed on real property or personal property, or as a result of failure to pay income taxes or other taxes. Tax liens can be stripped in a Chapter 13 bankruptcy case.