1. Bankruptcy The truth about Chapter 7 & Chapter 13.

2. What is Bankruptcy? Bankruptcy offers an individual or business a chance to start fresh by forgiving debts that simply can't be paid. While offering creditors a chance to obtain some measure of repayment based on what assets are available. Both parties meeting half way!

4. Chapter 7 Bankruptcy Chapter 7 is designed to wipe out unsecured debts like: ▫credit cards ▫medical bills ▫payday loans ▫parking tickets ▫personal loans Chapter 7 can be a relatively quick and painless process. The average Chapter 7 case is over in as little as four months.

5. Who Can File for Chapter 7 Bankruptcy? The majority of Chapter 7 bankruptcy filers are suffering from credit card debt, medical bills or payday loans. You need to determine if you're eligible to file for Chapter 7 using: ▫ the means test, which compares your income to your state's median income. ▫Get a Chapter 7 case evaluation with a bankruptcy lawyer.

6. Using Collateral to pay off debt Take AwayCannot Take Away Expensive musical instruments Collections: stamps, coins, etc. Family heirlooms Cash, bank accounts, stocks, bonds, other investments A second car or truck A second home or vacation home Motor vehicle Necessary clothing Necessary household goods or furniture Household appliances Jewelry (to a certain value) Pensions Equity in a home Tools for a debtors trade Unpaid but earned wages Public benefits (Social security, unemployment compensation, etc.) Damages for personal injury

7. Chapter 13 Bankruptcy Chapter 13 bankruptcy is a reorganization of debts designed to help property owners keep their: ▫ Homes ▫ Cars ▫Other valuable assets while getting a handle on debts By filing Chapter 13, you may be able to stop foreclosure, repossession, wage garnishment and debt lawsuits, and significantly reduce or eliminate credit card debt.

8. Who Can File for Chapter 13 Bankruptcy? Chapter 13 bankruptcy is not for everyone. In order to qualify for Chapter 13 bankruptcy, a debtor must: ▫Have a regular source of income from which to make pre-determined payments ▫Have enough disposable income to make regular payments after covering current necessary living expenses

9. Information Credit Card Companies Don’t Want You to Know. How does filing for Bankruptcy help people? Personal bankruptcy was designed to: ▫Eliminate or reduce debt ▫Stop foreclosure or repossession ▫Stop creditor harassment ▫Give people the breathing room they deserve

10. Life After Bankruptcy… Bankruptcy filing will likely stay on your credit report for up to 10 years (typically 7 years if you file under Chapter 7 bankruptcy). Tips: ▫Maintain a job ▫Pay your bills ▫Keep a bank balance

11. Life After Bankruptcy May be tough to get: ▫Loan ▫Low-Interest Credit Cards Keep on top of monthly payments for your rent, mortgage and utility bills, you’ll be strengthening your credit report. If you keep those habits up, you’ll likely see your credit score rise over time