A Chapter 7 bankruptcy is often called a liquidation bankruptcy. It provides the debtor with relief from all debt, with a few exceptions. A Chapter 13 bankruptcy is often called a reorganization bankruptcy. It allows the debtor to create a repayment plan, with approval of the court, to pay either a percentage or all of your outstanding debt.
No. Under a Chapter 7 bankruptcy, debt may be reaffirmed to keep property in the possession of the debtor. Under Chapter 13, the reorganization of the debt will allow for repayment of any arrears for a 3-5 year period.
The filing of either a Chapter 7 or 13 will provide the relief of an automatic stay. An automatic stay prohibits all creditors from continuing the collection efforts until authorized by the court.
Your first meeting of creditors (341 meeting) will take place here: 909 NE Interstate 410 Loop, San Antonio, TX 78209 Please visit the Chapter 13 Trustee website for more information. Click here.
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