Bankruptcy: Chapter 7 & 13

Types of Consumer Bankruptcy

At Bostock Law, PLLC, we help clients obtain debt relief via Chapter 7 and Chapter 13 bankruptcy. While our offices are located in Exeter, and Manchester, New Hampshire, we represent clients across Massachusetts.

Are you struggling with debt? Contact our lawyers to find out if bankruptcy is a viable option for you. For a free consultation, call our law offices at 866-219-5376.

Chapter 7 Bankruptcy: Debt Liquidation

  • The most common type of bankruptcy.
  • The basic purpose is to provide a fresh start by wiping out certain debts such as credit card bills, medical bills, repossession deficiencies and certain civil judgments.
  • There is no repayment required for most unsecured debt.
  • Debts are wiped out completely and permanently.
  • In most cases, the consumer is able to keep all of their property and eliminate most of their debt.

Chapter 7 bankruptcy truly allows you a fresh start. The entire process takes approximately 3 to 4 months and allows you get back on your feet quickly.

The Chapter 7 Process

Approximately a month from filing the petition, consumers are required to attend a meeting with a trustee of the bankruptcy court. The trustee is a bankruptcy attorney, not a judge, and the purpose of the meeting is to give creditors a chance to ask questions, although it is very rare that any creditors actually attend. During this meeting, the trustee will be entitled to ask you standard questions about your financial affairs and other items listed in your petition. Besides confirming the accuracy of the information in your petition, the trustee is also looking for people who are hiding assets or trying to defraud the system.

Chapter 13 Bankruptcy: A Repayment Plan

  • Consumers consolidate their debt in order to repay creditors a portion of what is owed over a certain amount of time (usually three to five years).
  • In the repayment plan, living expenses are paid first and the remaining balance goes into a Chapter 13 plan.
  • This plan is typically not based on what you owe, but rather on your ability to repay creditors.

Consumers who are considering a Chapter 13 bankruptcy can usually pay all of their current living expenses (rent, food, car, utilities, etc.), but are unable to make enough to either pay off all of their debts in full or comply with unreasonable creditor demands. The calculation of your plan payment will involve many variables, but is mostly based on current income and expenses.

The Chapter 13 Process

In a Chapter 13 bankruptcy petition, you must provide the bankruptcy court with a budget of your current monthly income and current monthly living expenses. Using this budget, you are required to submit a plan in which your disposable income (what's left over each month) is paid to the bankruptcy trustee who then distributes these payments to creditors on a pro-rata basis. The plan must last for 36 to 60 months, unless your debts can be fully repaid in a shorter period of time. Upon completion of the plan, any remaining amounts owed to your unsecured creditors are discharged.

Prevent Foreclosure

Typically, consumers file for Chapter 13 bankruptcy in order to protect their home from foreclosure. For example, when a job is lost, homeowners often fall behind in their mortgage payments. After filling out tons of paperwork and following up with many phone calls, the mortgage company still won't cooperate. Then, the mortgage company's attorney sends out a Notice of Foreclosure with a date to auction the property.

In order to immediately stop foreclosure, you can file for Chapter 13 and pay the arrearage owed to the mortgage company in a Chapter 13 plan. This provides you time to catch up. However, you must be prepared to continue making the regular post-petition mortgage payments.

Contact Us

Our firm is committed to educating consumers on their rights during this stressful time. Don't wait - start rebuilding your credit for a better future. Please contact us today at 866-219-5376 or (603) 624-7100 to schedule a free initial consultation with one of our experienced attorneys.

We are a debt relief agency. We help assist people file Bankruptcy under the US Bankruptcy Code.

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Bostock Law, PLLC attorneys represents clients throughout New Hampshire (NH), Hampton, including, Bedford, Brentwood, Concord, Derry, Dover, Exeter, Keene, Laconia, Londonderry, Manchester, Nashua, Portsmouth, Plaistow, Rochester, Salem and Windham, with a primary focus on Rockingham County, Strafford County, Hillsborough County, Merrimack County.

Bostock Law, PLLC attorneys represents represents social security disability insurance and supplemental security income clients throughout the United States in: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington, D.C., West Virginia, Wisconsin, Wyoming.