Chapter 7 Vs Chapter 13

Overview

In these difficult financial times, it is sometimes not possible to properly manage your finances. No matter how careful or prepared you are, suddenly losing your job or having to pay for unexpected medical bills can send you into a spiral of debt that is seemingly impossible to get out of. Though the future may look bleak, however, there is always hope. With a knowledgeable Bronx bankruptcy lawyer in your corner, you can get the help you need to guide you through the process of filing for bankruptcy and getting your financial situation under control again. Contact our firm today to speak with a member of our legal team and discuss the specifics of your situation, and we will assist you with every means at our disposal.

The most important types of bankruptcy filings that an individual claimant will want to utilize are Chapter 7 and Chapter 13. Under these kinds of claims, you can receive a reprieve from creditor harassment and effectively end your debt problems. There are fundamental differences between the two filings, however, that need to be properly understood. A professional bankruptcy attorney can help walk you through the specifics of each.

Chapter 7

In a Chapter 7 bankruptcy claim, you surrender your assets to the court, excluding certain exemptions such as your home and any tools you need for your job, and those assets are ‘liquidated’ or sold off to pay your debts. This is generally the quickest and most straightforward kind of bankruptcy claim, and once the process is complete your debt is effectively erased. The majority of bankruptcy claims filed by individuals in the United States are of this type.

Chapter 13

Under Chapter 13, you undergo what is called ‘debt reorganization’. The court will work out a payment plan, bearing in mind your income and expenses, designed to allow you to pay off your debt over the next three to five years in manageable monthly installments. This has the advantage of protecting your assets from liquidation, but is also slower and more complicated than Chapter 7.

A Bronx Bankruptcy Lawyer

Navigating the bankruptcy process can be difficult without the help of an experienced legal professional. At the Bronson Law Offices, you can discuss the specific needs of your case to ensure your financial future is protected.

Contact a Bronx bankruptcy attorney without delay!