Chapter 7 and Chapter 13 
Bankruptcy Services

The Mason Law Firm provides legal counsel and debt relief services for clients in need of personal or business debt restructuring via Chapter 7 and Chapter 13 bankruptcy protection. 

Chapter 7 bankruptcy refers to a complete liquidation and discharge of your debt while still being able to keep certain assets protected by state law. Chapter 7 bankruptcy typically is used when the debtor does not have the ability to pay their debt, or is financially insolvent. A bankruptcy trustee renders decisions as to how the debt will be discharged, and which assets can be kept by the debtor.

Under Chapter 7, the types of debts that are generally discharged include:

medical bills;
credit card debt; and
unsecured debt will be discharged.

However, the debtor may keep property that is protected under state law. This property, called “Exempt” property, may include property, car (generally paid for), household furnishings, and clothes.

Under Chapter 7, the types of debts that are generally not discharged include:

spousal support (alimony); 
child support; and
secured debt are generally not discharged.

What are secured debts? Secured debts are debts where the debtor owes money on a debt that is secured by collateral. For example, a car loan (or lease) is generally considered a secured debt because the car (for which the loan or lease was taken out) is pledged as a guarantee of payment on the loan itself. 

For secured debts, the debtor generally has the option of allowing the creditor to repossess the property (such as the vehicle that is under loan or lease), continuing to make payments on the property that is under contract (if the lender or creditor agrees), or paying the creditor a lump sum that is equal to the current replacement value of the property. There are some types of secured debts can be eliminated in Chapter 7 bankruptcy.

Chapter 13 bankruptcy is typically used when a debtor with regular income wishes to pay all or most of his/her debts in installments over a period of time. A trustee determines the amounts to be paid and priority of creditors who will receive their payments from the debtor. 

If you are considering filing for bankruptcy, contact us for a free case evaluation. We will provide you with an honest and complete assessment and educate you as to your options.