Filing for bankruptcy is often an emotionally and mentally stressful situation for those who are forced into this financial circumstance. As the economy continues to falter, understanding bankruptcy options for those who can no longer pay their debt may provide the financial relief necessary to start fresh and get back on track.
For those who have questions regarding bankruptcy, it is always a good idea to seek legal counsel. Seeking the advice of a qualified bankruptcy attorney can help people understand their personal situation, current filing laws and whether or not they should file for Chapter 7 or Chapter 13.
Chapter 7 and Chapter 13 are the two most common bankruptcy filings. Depending on what your personal situation is, your attorney is there to help you decide which option to pursue. It is important to understand the differences at the onset so that you can avoid any poor decisions that might negatively impact your financial future further.
Chapter 7 Bankruptcy
Chapter 7 bankruptcies are known as "straight bankruptcies." Certain assets are liquidated, and those monies are used to help pay off debt. Other debt is then discharged in court. Chapter 7 filings are the most common, making up about 65 percent of all consumer filings. A Chapter 7 bankruptcy attorney will explain the 19 dischargeable debts under Chapter 7 and how you may still be able to keep possession of your cars and home (and other exempt property). Depending on your assets and income, your attorney will tell you whether or not you qualify for a Chapter 7 filing.
Chapter 13 Bankruptcy
Whereas debt is discharged in a Chapter 7 filing, a Chapter 13 bankruptcy is more of a loan consolidation pay back plan. Properties do not have to be sold. Instead, debtors are allowed to keep all of their property and repay a portion of what is owed over a court ordered specified time period (usually over 3 to 5 years). A Chapter 13 bankruptcy attorney will help outline your financial requirements for filing this type of petition.
While filing for bankruptcy might seem like a relatively simple way to start over, the ever changing laws make the process complex as well. Legalities that might have been relevant one year may no longer apply to your current filing. Seeking the advice of a specialized bankruptcy attorney can help set your mind at ease knowing that you have a professional handling your case and that all aspects of your financial situation are properly evaluated.
For those who have questions regarding bankruptcy, it is always a good idea to seek legal counsel. Seeking the advice of a qualified bankruptcy attorney can help people understand their personal situation, current filing laws and whether or not they should file for Chapter 7 or Chapter 13.
Chapter 7 and Chapter 13 are the two most common bankruptcy filings. Depending on what your personal situation is, your attorney is there to help you decide which option to pursue. It is important to understand the differences at the onset so that you can avoid any poor decisions that might negatively impact your financial future further.
Chapter 7 Bankruptcy
Chapter 7 bankruptcies are known as "straight bankruptcies." Certain assets are liquidated, and those monies are used to help pay off debt. Other debt is then discharged in court. Chapter 7 filings are the most common, making up about 65 percent of all consumer filings. A Chapter 7 bankruptcy attorney will explain the 19 dischargeable debts under Chapter 7 and how you may still be able to keep possession of your cars and home (and other exempt property). Depending on your assets and income, your attorney will tell you whether or not you qualify for a Chapter 7 filing.
Chapter 13 Bankruptcy
Whereas debt is discharged in a Chapter 7 filing, a Chapter 13 bankruptcy is more of a loan consolidation pay back plan. Properties do not have to be sold. Instead, debtors are allowed to keep all of their property and repay a portion of what is owed over a court ordered specified time period (usually over 3 to 5 years). A Chapter 13 bankruptcy attorney will help outline your financial requirements for filing this type of petition.
While filing for bankruptcy might seem like a relatively simple way to start over, the ever changing laws make the process complex as well. Legalities that might have been relevant one year may no longer apply to your current filing. Seeking the advice of a specialized bankruptcy attorney can help set your mind at ease knowing that you have a professional handling your case and that all aspects of your financial situation are properly evaluated.
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