whats the differance between chapter 13 and chapter 7 bankruptcy and can creditors still bother you if you do?

Answer 1

7 = Liquidation
13 = Repayment

Here is an article that will answer all your questions:

Bankruptcy Facts: http://www.expert-credit-advice.com/bankruptcy_facts.htm

Answer 2

Immediately when a bankruptcy petition is filed creditors are under a stay - that means they are court directed to not contact you.

Many times the fact that you have employed an attorney to file for you - referring your creditors to the attorney will cause collection actions to cease.

Prior to filing bankruptcy I would suggest calling your creditors & explaining to them the problems you are having. Perhaps they can work something out for you at a lower payment, reduced interest rate - to restructure the debt is more advantageous for the creditor and for you. It's a win - win situation.

In bankruptcy - it's a lose - lose situation. The creditor loses, and the customer loses as well. One of the ways a customer loses is that for a very long time you will have to pay much higher interest rates - you have proved to be a risk as a borrower.

Chapter 7 does liquidiate debt. You can work out to either redeem or reaffirm on debts that have collateral you want to keep and to continuting to pay for.

Chapter 13 is NOT a consolidation. It is a bankruptcy. The court will determine and approve the amount of money you pay to the court trustee each month that the trustee will then use to repay some or all of your creditors. Still a lose - lose situation.

Many times there is in fact a legitimate reason for filing bankruptcy. Things happen that are beyond our control. That is why the law exists.

Yes, bad things happen to good people. If there is no other way to resolve your financial hardship - then yes, bankruptcy is your option.

Good luck in whatever your choice is.

Answer 3

One is a form of debt consolidation with a court managed repayment schedule, the other is a total liquidation of your assets & debts with the court allocating the proceeds between your creditors to settle the debts.
As the laws recently changed, a legit credit counselor should be able to review your income / assets & debts >
then give you the best plan for your situation.

Answer 4

7 wipes all of your debt clean
13 restructures your debt and puts you on a reduced payment plan
If you have any assets you will have to file a 13.
Creditors have to stop contacting you the minute you file.

Answer 5

once you've charge playing cards and loan debt - you ought to quite somewhat bypass chap 13 anymore and pay decrease back court-determined quantity over 5 yrs legal help gained't help - you want to pay a legal professional - I;ve heard that's gotten a lot extra severe priced than when I did it 8 yrs in the past - perchance $2-3000 or extra now?