Once you have arrived at the decision that bankruptcy is the ideal debt solution for you, it does not end there. You have to decide the type of bankruptcy that is best for your case. While the best choice for an individual would be chapter 7, it is only viable when there is low income earning. Your bankruptcy attorney could also suggest chapter 13, especially if you are a regular income earner. This article compares the various bankruptcies so that you can arrive at the best one that suits your scenario well.
A chapter 7 bankruptcy will relieve you of almost all the unsecured debts that you have. Here, if you have any non-exempt property, then the trustee will sell it so that your debt can be repaid. Chapter 13 bankruptcy, on the other hand, will mean you have to pay some creditors in full while others in half through a chapter 13 payment plan. While these two chapters are great when an individual is facing falling income, chapter 11 bankruptcy lawyers could also help a client file for a chapter 11 bankruptcy.
The time frame
There’s also a difference in the time frame that you can file for bankruptcy. A chapter 7 bankruptcy will normally take about three to four months before it’s complete. A chapter thirteen repayment plan, however, will last from 3 to 5 years so that you can complete the payment, and all the secured debts can get discharged.
Chapter 7 bankruptcy lawyers view chapter 7 as the easiest, fastest and effective way of getting rid of debt as the debtors will end up keeping most of their property, if not all. Petitioners who are in possession of assets or significant equity that is not exempt by law could, however, lose them. If you file for a chapter 13 bankruptcy, then no property will get liquidated.
Home owners and foreclosure
While a chapter 7 bankruptcy can protect a homeowner from foreclosure temporarily, they will have to, however, catch up with their current mortgage payment failure to which the foreclosure will proceed. On the other hand, a chapter 13 bankruptcy will stop a foreclosure and offer you a chance to catch up on past-due mortgage payments via your repayment plan and eliminate some dischargeable debt. More details at Houston Bankruptcy Lawyer.
A chapter 7 bankruptcy will involve filling lots of forms and some long legal procedures that can be quite tricky. Most of it can be navigated with or without the help of a bankruptcy attorney. However, when it comes to a chapter 13, you cannot do without chapter 13 bankruptcy lawyers if you want to navigate through successfully. Here the process will involve submitting a repayment plan before the court.
By comparing the major differences in the two chapters of bankruptcies, you can weigh and decide, which is best for your bankruptcy case, and then you can contact a bankruptcy attorney so that the process can become less stressful for you.
For more information, you can visit the website of any bankruptcy attorney http://weberlaw.com.