What Is The Difference Between Chapter 7 and Chapter 13 Bankruptcy?
Filing for personal bankruptcy can be difficult, which is why it is crucial that you enlist the help of a bankruptcy attorney, like someone from The Law Offices of Ronald I. Chorches, to help you along the way. You are likely not an expert in bankruptcy law, so it is incredibly useful to have someone on your side who knows the ins and outs of filing for bankruptcy and can make sure you do not make any big mistakes along the way. Filing for bankruptcy is a big decision, but it can be one that gives you financial freedom once again. It can eliminate debts that were taking over your life and allow you to focus on living once again, rather than constantly worrying about the debt you have. It is important to choose the right type of bankruptcy, though. Chapter 7 bankruptcy and Chapter 13 bankruptcy are the two types that people can file for on their own.
Chapter 7 Bankruptcy Will Liquidate Your Assets
Under Chapter 7, the bank will want to liquidate your assets. This means that you need to give up most of your assets that have any sort of value. Some things may be exempt, but for the most part, if your assets have great value, you will need to let go of them. Chapter 7 is often also used for people who make less money and cannot realistically ever pay off any significant portion of their debt.
Chapter 13 Bankruptcy Will Reorganize Your Debt
Chapter 13 is different from Chapter 7, as you do not have to give up all of your assets when you file for Chapter 13 bankruptcy. It is different because you actually do end up paying back much of the debt that you owe with a strict repayment plan. This is not quite as easy as Chapter 7, but it allows people to keep assets that are important to them – often including their home. The court will keep a close eye on how you are doing in repaying your debts, but they organize it in a way that makes repaying your debt possible, rather than feeling like it is impossible to make monthly payments while still paying for food and shelter.
Contact a Bankruptcy Attorney Today
Even if you believe you are good at doing research, you should not leave filing for bankruptcy up to your own judgment. You need the experience and knowledge of a good bankruptcy attorney on your side. He or she can answer any questions you might have as well as steer you in the right direction of how to get your finances back on track. A lawyer will be able to speak with you about your options and help determine what the best fit will be depending on your lifestyle and what you want to get out of filing. A lawyer will also help set you up for financial success in the future and will not leave you to fend for yourself. It will be an enormous help to know exactly how to proceed so that you do not find yourself in a difficult situation in the future.