Chapter 7 bankruptcy is also known as liquidation bankruptcy. It is the most common type of bankruptcy in the United States. Chapter 7 allows individuals or businesses to get rid of their debts by selling off their assets. The proceeds from the sale are then used to pay off creditors.
The biggest benefit of Chapter 7 bankruptcy is that it can help you get out of debt quickly. Once your assets are sold, and your debts are paid off, you will be able to start fresh with a clean slate. Additionally, this filing can stop creditor harassment and wage garnishment. It can also help you keep your home and car if you are current on your payments. Most student loans, alimony, and tax debts are unaffected by this bankruptcy filing.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is also known as a reorganization bankruptcy. This type of bankruptcy allows individuals or businesses to create a repayment plan to pay off their debts over a period of time, typically three to five years.
One of the biggest benefits of Chapter 13 is that it can help you keep your home if you are behind on your mortgage payments. It can also help you keep your car if you are current on your payments. In addition, Chapter 13 can stop creditor harassment and wage garnishment.
Can a Bankruptcy Lawyer Help Me?
When you’re struggling with debt, it can feel like you’re all alone. The reality is, however, that many people are in the same situation. Bankruptcy is a legal process, and certain requirements must be met to file. An experienced bankruptcy lawyer can help you navigate the process and ensure that all the necessary paperwork is filed correctly and on time. There are two types of bankruptcies that individuals can file: Chapter 7 and Chapter 13. Which one is right for you will depend on your unique circumstances.
Which Bankruptcy is Right for Me?
The type of bankruptcy that is right for you depends on your unique financial situation. You should always speak with a bankruptcy attorney to discuss your options and find out what is best for you. There are pros and cons to Chapter 7 and Chapter 13 bankruptcy, and an experienced attorney can help you make the best decision for your particular situation.
At our firm, we understand that filing for bankruptcy can be a difficult and foreboding decision. Our experienced bankruptcy attorneys will work with you to determine which type of bankruptcy is right for you and guide you through the process every step of the way. Contact us today at (317) 623-4546 for a free consultation.