What Is the Difference Between Bankruptcy Filings?

by | Jul 17, 2015 | Bankruptcy

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These days, it is not uncommon for people to feel like there is no viable solution for their debt. Though most people are able to pay off their debts in a timely manner and avoid collections, unexpected illnesses, injuries and job losses can occur and cause a person to get behind. When debt becomes more than can be handled, debtors often find they can receive help through bankruptcy. Meeting with a lawyer will help a person to learn more about the difference between bankruptcy filings so they can decide which will be the best option for them.

Chapter 13 bankruptcy allows people to overcome their debts by lowering their monthly payments and basing them on their income. The payments are paid through the court each month, allowing people to pay off the debts they owe within a two to five-year time period. This bankruptcy type may stop the foreclosure process and repossessions so a person is able to keep their property. Once out of bankruptcy, many people go on to improve their finances so they do not face overwhelming debt in the future.

People seeking relief from their debt can also find it by filing chapter 7 bankruptcy. With this type, there is a test the person must pass to be eligible. This means test measures the person’s income against the average in their state or county. As long as the income is not too high, they may be eligible to file. Once the person files, a court-appointed trustee is placed over the case to work towards liquidating property and absolving debts so the person is free of debt within six months or less.

Those who are looking to learn the difference between bankruptcy filings can visit us. This site offers information on the options people have when debt is mounting and they cannot seem to find a way to overcome it. By scheduling a free consultation and evaluation appointment, people can work with a lawyer to better understand their financial status so they can make a wise decision on whether or not they should pursue bankruptcy. With legal help, a person can finally overcome their debts once and for all.

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