John M Crane, P.C.
John M. Crane, P.C. is a full-service law office with a practice focused on consumer bankruptcy. Chapter 7, Chapter 13 will be handled professionally by experienced bankruptcy attorneys in White plains, Manhattan, NYC.
Chapter 7 Bankruptcy is a liquidation proceeding under the United States Bankruptcy Code. In a Chapter 7 proceeding, a trustee appointed by the bankruptcy court will take custody of and sell off any of your non-exempt assets. The money received from this sale will be used to pay your creditors. Your debts are then discharged. This means that creditors are forever prohibited to try and collect on these discharged debts in the future. Certain debts, like taxes, alimony, child support, student loans, and debts that have not been listed in the Chapter 7 petition (as well as debts which have been incurred as a result of either an intentional tort or the defrauding or misleading of a creditor) are not dischargeable. This means that after the discharge, you will continue to be liable for these debts.
A Chapter 13 Bankruptcy is designed primarily for residential homeowners, and allows a person or married couple to pay off all, or a portion, of their debts under the supervision and the protection of the U.S. Bankruptcy Court while remaining in their home. A Chapter 13 Plan is primarily used to repay mortgage arrears, while also addressing all other debts you owe to any other creditors. Payment of your mortgage other debts are generally spread out over a 3-5 year period. Chapter 13 is also used as an alternative to credit counseling. Individuals are permitted to repay their credit card debt over a 3-5 year period without any additional interest charges. A Chapter 13 filing is designed for those individuals who are currently employed and have steady incomes, yet are still overwhelmed with bills, judgments, lawsuits or other financial obligations.