Many Americans are overwhelmed and buried in their own debt, both personal and business-related. There comes a time when there is nowhere else to turn, and it is time to file for bankruptcy. Many of the bankruptcies that are filed in the US are either chapter 7 or chapter 11 bankruptcy. Before you file for bankruptcy, you must first understand the difference between the two and when it is time to hire an attorney to represent you.
Chapter 7
Chapter 7 bankruptcy is a liquidation bankruptcy that wipes out all of your unsecured debt such as medical bills and credit cards. Not everyone qualifies for chapter 7. In order to file, you must not have any disposable income. If you have a sizable income, you may be required to file for chapter 13 bankruptcy.
In order to file for chapter 7, a trustee is hired to administer your case. This trustee is responsible for going over all of your paperwork, ensuring that you meet all of the requirements. They then must sell your property that is nonexempt back to your creditors in order to pay them back. If you have nothing to sell, then your creditors do not receive any payment. Chapter 7 is the best solution for individuals with low incomes who do not have a lot of assets.
Chapter 13
Chapter 13 bankruptcy works a bit differently than chapter 7. Chapter 13 is a reorganization bankruptcy that provides debtors to pay back their debts via a repayment plan. If you make too much money to file for chapter 7, you may be given no other option but to file for chapter 13. Chapter 13 has a few benefits that chapter 7 does not such as the ability to repay past due mortgage payments.
The payment plan is based on several factors, one of them being your current income. You will get to keep all of your assets as long as you follow through with the payment plan and do not default.
When to Hire an Attorney
Bankruptcy cases of any kind tend to get complicated. Individuals who try to file themselves have the tendency to make mistakes causing a delay in the filing process. You should contact a bankruptcy law firm in Wichita, KS who has the experience to handle both chapter 7 and 13 bankruptcies. It is important not to try to handle bankruptcies on your own. Leave it to the experts to handle your case.
If you need a qualified bankruptcy law firm in Wichita, KS then contact Fleeson Gooing Attorneys at Law. Visit their website to learn more.
