Attorney Stanley J. Kakol Jr. is a member of the National Association of Consumer Bankruptcy Attorneys. At his eponymous legal practice, based in Stonecrest, Georgia, he primarily assists clients through the bankruptcy process. Specifically, Stanley J. Kakol Jr. consults with clients about Chapter 7 and Chapter 13 bankruptcies.
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is for people with limited or no funds and involves the sale of property to pay debt. Chapter 13 bankruptcy is known as reorganization bankruptcy. Under this kind of bankruptcy, property is not sold, but a repayment plan is brought into effect.
Individuals can file for either Chapter 7 or Chapter 13 bankruptcy, while businesses can only file for Chapter 7.
In order to qualify for Chapter 7 bankruptcy, an individual must pass a means test. The bankruptcy means test is used to assess whether a person has enough disposable income to pay back a debt. It takes into account factors such as income and expenses, including the number of dependents.
Chapter 13 bankruptcy looks at the amount of secured and unsecured debt. Unsecured debt is debt with no collateral backing, while secured debt is debt that has an asset or assets as a surety or collateral. In order to qualify for Chapter 13, the unsecured debt must be not more than $394,725. However, secured debt is limited to $1,184,200.
A bankruptcy discharge means that a debtor is released from an obligation to pay their debts. Under Chapter 7 bankruptcy, a discharge may take three to five months. Under Chapter 13 bankruptcy, a discharge is granted after completion of the repayment plan.
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