Chapter Bankruptcy
If you are tired of creditors calling day and night then bankruptcy is an option that you may want to consider. If you have already considered bankruptcy but are unsure of the Chapter you wish to file then maybe a little more information could help you discover which is best for you. But in the end, it is better to consult an attorney and let him describe in greater detail each option that you may take. The major Chapters of Bankruptcy are Chapter 7 and Chapter 13 types because they deal with individuals or families that are non-agricultural or business oriented.
Chapter 7 bankruptcy is considered to be the “liquidation” bankruptcy. This is because when you file for a Chapter 7 case, a trustee will be appointed to you and they will help you “liquidate” your assets in which you pay back your creditors. Although you can do this without an attorney, with an attorney you are more likely to be able to retain assets like your home and/or car. But, if you file bankruptcy without an attorney, your chances of losing your car and/or home increase dramatically. Unlike most Bankruptcy Chapters, Chapter 7 Bankruptcy requires no payment to the trustee and is considered to be the fastest way to become debt free. Even though Chapter 7 sounds like a great plan, there are a few exceptions on who can file for Chapter 7. If you have already been granted a Chapter 7 discharge or completed a Chapter 13 Bankruptcy within the last 6 years may not file for Chapter 7 Bankruptcy again. Also, if you have a solid income and are in a debt situation, then you are probably better off dealing with a Chapter 13 Bankruptcy.
Chapter 13 Bankruptcy is considered to be a “repayment” type. With this chapter you will keep all of your assets and be able to repay creditors back with an extension and lower or no interest rates. The longest extension you have to repay the debt is typically set around 5 years. Within these 5 years you are able to repay your creditors at your pace and attempt to learn from your mistakes. Unlike Chapter 7, which can take only 6 months, Chapter 13 takes at least 1-5 years to complete and become debt free. Another advantage of Chapter 13 to Chapter 7 is the full discharge plan. This plans allows a full discharge if the debtor repays all debts within the allocated time.
So let a qualified bankruptcy attorney help explain these situations in greater detail by contacting us for a free evaluation. So what are you waiting for? Let us help you get back on track and take the right steps towards a brand new financial future today!
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