Chapter 7 Vs Chapter 13
By Bronson Law Offices
Apr. 26, 2011 9:43a
Which Bankruptcy Claim Is Right For You
If you are suffering under the weight of an inordinate amount of debt, you may need to file for bankruptcy. With the help of a skilled and professional
Bronx bankruptcy lawyer, however, you can receive the guidance you need to make the process as easy as possible and get the relief you need.
There are two basic kinds of filings that most people will want to make. These are Chapter 13 bankruptcy, and
Chapter 7 bankruptcy. The difference between these two is an important distinction to understand. Though this knowledge can be helpful, you must always consult with a qualified legal professional before making any legal decisions. A lawyer will have the expertise necessary to guide you; this helpful summary can educate you on the basics!
Chapter 13
The main advantage of this kind of filing is that it allows you to keep your assets. Under this claim, you will receive a stay preventing creditors from harassing you and contacting you demanding payment, much like a restraining order. This alone is an extremely beneficial aspect of the filing. Once this has been accomplished, your lawyer will help you negotiate a payment plan that consolidates all your debt into one set of monthly payments, which you will make over the next three to five years. Once you finished this payment plan, your debt is considered fully discharged!
Chapter 7
Under this kind of legal filing, you will undergo a process known as ‘liquidation.’ You receive a stay, much like under Chapter 13, blocking creditor harassment, and then your assets are evaluated to determine what is necessary and what is not. Then, a portion of your possessions will be ‘liquidated,’ or sold off, to pay for a portion of the debt you owe. After this is finished, your debt is fully discharged and you are free to move on with your life.
A Lawyer Can Help
If you are planning on filing either of these two kinds of claims, it is essential that you speak with a trained professional. At the Bronson Law Offices, our legal team has been representing clients in New York for more than 15 years. Please, allow us to help you negotiate the discharge of your debt and get a fresh start.
Please, contact a Bronx bankruptcy attorney today to discuss your options!
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