Filing For Bankruptcy: Essential Facts

Chapter 7 And Chapter 13

We do not usually plan to file for bankruptcy. Often, we are lured into a predatory loan, or simply suffer from a run of poor luck. Whatever the cause, sometimes it can be the right decision to protect your financial future.

Before you make any decisions, you must understand the two basic types of bankruptcy that an individual will usually claim. These are known as Chapter 7 bankruptcy, and Chapter 13.   These two types cover most of the information you will need to know to make a decision. It is crucial, however, that you discuss your options with a knowledgeable Queens bankruptcy lawyer with the training to help guide you through the process.

Summary

The basic summary of each kind is as follows:

Chapter 7 filings, by far the most common form of bankruptcy, allow a debtor to sell off a portion of their assets to discharge their debt. This process is often referred to as ‘liquidation.’ Under this bankruptcy filing, you benefit from a quick and easy resolution of your debt woes; after a few months, your debt is gone forever! Unfortunately, you must relinquish the property that the court decides is fair payment for your debt.

Chapter 13 filings, by contrast, allow for a restructuring of your debt, consolidating all of it into one easy monthly payment. With the negotiating power of a bankruptcy attorney on your side, you force your creditors to accept a fair payment that you can actually meet from month to month. This allows you to keep your assets and slowly pay off your debt over 3-5 years, which can be beneficial in certain situations.

Seek An Attorney To Guide You

As you can see, the act of declaring bankruptcy is a complex one. You need the help of a skilled legal representative to help you navigate the process. Bruce Bronson is a dedicated lawyer with more than 25 years of experience handling debt and bankruptcy cases. Allow him to put his training at your disposal.

Contact a Queens bankruptcy attorney without delay!