Factbook: Chapter 7 And Chapter 13

Decide Which Kind Of Bankruptcy Claim Is Right For You

Making the decision to declare bankruptcy is far from an easy one. The individual debtor will need to carefully weigh his or her financial situation in order to arrive at the best conclusion for how to proceed. It is essential that you speak with a Bronx bankruptcy attorney with experience and training who can help clarify the process for you and ensure that you understand the complexities surrounding the financial legal system. Dealing with the weight of debt is never easy, but having a skilled lawyer in your corner can relieve some of the burden.

There are two basic kinds of bankruptcy claims that the vast majority of private citizens will file. These are known as Chapter 7 and Chapter 13 bankruptcies.

Chapter 7

This can also be referred to as ‘liquidation’ and is by far the most common type of bankruptcy claim. Under Chapter 7, the debtor ‘liquidates’ or sells off eligible assets in order to pay off all or a portion of the debt owed to creditors. The assets surrendered will depend on the amount of debt owed, the total assets of the debtor, and a variety of other factors.

The benefit of this type of bankruptcy filing is that once this process is completed, which can take as little as a few months, your debt is completely discharged – you can move on with your life free of the burden of debt!

Chapter 13

This particular type of bankruptcy can be thought of as ‘restructuring’ your loan; rather than simply stripping you of your possessions to pay the debt, a plan is created which will allow you to repay all or a portion of the debt over a course of several years.

The benefit of this plan is that it allows you to retain possession of valuable assets that you would prefer to keep. It does, however, mean that your debt will not be discharged until you finish making all your payments, which can take years. It is still an important tool to consider when weighing your financial options, of course.

A Bankruptcy Lawyer Can Help

In either case, you will benefit from the help of a trained financial professional to guide you through the process. At Bronson Law Firm, a Bronx bankruptcy attorney can painlessly help you through this trying time and get your life back on track.

Please, contact a Bronx bankruptcy lawyer today!