You may be in the unfortunate position of falling deeper and deeper into debt. Your credit cards are maxed out, bills keep piling up, and you are falling further behind each month. You want to explore bankruptcy as an option, so it’s important that you understand they types of bankruptcy that exist for you and what they mean.
An individual filing for bankruptcy will file either Chapter 7 or Chapter 13. Chapter 13 involves working out a payment plan with your creditors to pay back the debt you owe. In Chapter 7 bankruptcy, you will sell your property, that is not exempt, to pay back your creditors. After speaking with a bankruptcy attorney, you can decide which type will be the best for your situation.
Chapter 7 bankruptcy is also known as liquidation or a straight bankruptcy. Chapter 7 Bankruptcy is the most common form of bankruptcy accounting for almost two-thirds of all consumer filings. This is one of the faster ways for you to start fresh. The case usually lasts for only a few months after an attorney make the initial filing.
You should consider Chapter 7 bankruptcy if you are in a position to sell your nonexempt property and use the proceeds to pay your creditors. Of course, you want to make sure that you will have property left over after paying your debts to start fresh with a good foundation. Speaking with a bankruptcy attorney about this option is a great idea.
Chapter 13 bankruptcy is a way of working out a repayment plan to pay off your creditors. You are going to be restructuring your debts. Chapter 13 might be a good fit for you if you own valuable property or make too much money to be eligible for a Chapter 7 filing. Often when you file for Chapter 13 bankruptcy, debts and interest accruing will be reduced. A repayment plan is established usually in the 3-5 year range.
If you are currently making money, but are not in a position to pay of your debt immediately, you should consider Chapter 13. Speaking with a bankruptcy lawyer will ensure you take the right path with your bankruptcy filing.
I hope that you have a better idea of what Chapter 13 and Chapter 7 bankruptcy is. Continue your research and connect with a MA bankruptcy lawyer to make sure you make the right decision for your future.
When you are facing the prospect of bankruptcy, learning about your options should be a priority. People often feel nervous when they find themselves in financial situations like these. Speak with MA bankruptcy attorneys Matt Desrochers and Associates. Bankruptcy is not something to take lightly, but it is not as scary as you might think.
Tags: Bankruptcy, bankruptcy attorney ma, bankrutpcy, Chapter 13, Chapter 7, debt, debt issues, law, lawyer, ma bankruptcy lawyer, massachusetts bankruptcy
