If you feel as though you're drowning in debt you'll never be able to repay, bankruptcy protection can provide you with some powerful tools to get your finances back on dry land. Both Chapter 7 and Chapter 13 programs offer potentially life-changing advantages to borrowers in difficult positions, but neither is a cure-all for financial trouble. Greg Dunn, Bankruptcy Attorney, providing bankruptcy assistance to clients throughout Honolulu, explains what bankruptcy can do for you and when it may not help.

What Chapter 7 Bankruptcy Can Do

This program, commonly known as a “liquidation,” provides a way for borrowers to completely eliminate most of their consumer debt. In exchange, the trustee of the court may seize some of your property to pay back some of your creditors, but the law makes a wide variety of assets exempt. Because a Chapter 7 bankruptcy focuses so closely on unsecured debt, it typically cannot be used to discharge auto loans or mortgages.

How Chapter 13 Bankruptcy Can Help

For borrowers with the means to repay, Chapter 13 bankruptcy can help you catch up on home loans, car payments, and other secured debts. Unlike a Chapter 7, a Chapter 13 bankruptcy can help you avoid foreclosure, while much of your unsecured debt may still be neglected. The application process for Chapter 13 can be complex, so it's typically best to seek a skilled lawyer with experience providing the kind of bankruptcy assistance you need.

What Bankruptcy Cannot Do

Bear in mind that some types of debt are explicitly exempt from bankruptcy discharge, especially student loans, back child support, and some back taxes. It also does not impact liens that have already been filed, so some private creditors may still be able to repossess property if they finished the process before you filed.

Over the course of 20 years, Greg Dunn, Bankruptcy Attorney has provided bankruptcy assistance to over 12,000 clients, ensuring that everyone has access to the best legal advice possible. Visit their website or Facebook to learn more about the advantages of filing for bankruptcy, or call (808) 524-4529 to schedule a consultation today.