Unexpected circumstances may occur that leave people unable to repay debts that they may owe. This can be an embarrassing and upsetting issue which can leave people unsure of what to do next. Rather than risk falling further behind on payments or facing constant contact from creditors, some people opt to file for bankruptcy. Bankruptcy is meant for people who, for whatever reason, are unable to repay their debts or keep up with the expected payments. Different forms of bankruptcy have different intended outcomes, and it is important for individuals to file for the correct type in order to be successful. Hiring Affordable Bankruptcy Representation is typically the best way to make sure that bankruptcy filings go smoothly and are successful. Typically, most debtors will file for either Chapter 7 or Chapter 13 bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is intended for people who have very low incomes and few very personal assets. This type of bankruptcy eliminates most debts, other than those like child support payments, student loans or back taxes. Sometimes during Chapter 7 bankruptcy, the property will be seized and resold by creditors to recover some of their lost money. People who make a modest income and don’t have very much debt are not typically eligible for Chapter 7 and may need to file for Chapter 13 Bankruptcy, instead.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is not focused on discharging debts completely. It is meant to establish a suitable repayment plan to get debtors back on track. If people who receive Chapter 13 bankruptcy make the required payments for a period of three to five years, they are eligible to have most of their remaining debt erased. People who wish to file for Chapter 13 must make a moderate to high income and not have too much debt.
Bankruptcy is a challenging process to attempt to do alone, so it is smart to hire Affordable Bankruptcy Representation to help. In fact, most people that do not retain a bankruptcy lawyer are not successful in receiving the bankruptcy that they were seeking. Whether filing for Chapter 7 or Chapter 13 bankruptcy, a lawyer will make the process easier and more effective.
