Financial stumbles are sometimes inevitable, and recovery may not always be possible. Whether you’ve lost your job or simply incurred too much debt, bankruptcy may be the ideal solution, allowing you to reclaim your life and start over. Depending on the nature of your financial situation, your bankruptcy attorney may advise you to file for either a chapter 7 or chapter 13. Knowing the difference between these two programs ensures you make the right choice.
Chapter 7 vs. Chapter 13 Bankruptcies
As the most popular of the two options, chapter 7 is what most people think of when they’re considering bankruptcy. Also known as a liquidation, you can completely discharge almost any unsecured debt, including credit cards and personal loans. However, in exchange, the trustee of the court has the right to seize your assets to pay back your creditors, although many types of property are exempt from seizure. When filing, it’s important to consult an experienced bankruptcy attorney who will ensure you keep as many of your belongings as possible.
A chapter 13 bankruptcy is better suited to borrowers whose financial difficulties are temporary, allowing them to catch up on missed payments for car loans, mortgages, and other secured debts. Some unsecured debts may still have to be paid, but most can be discharged in this option. Unlike a chapter 7, individuals seeking this protection will not have to surrender their possessions, as long as they continue making their monthly payments.
Since 1958, borrowers throughout York, NE, have relied on the bankruptcy attorneys at Fillman Law Offices, LLC, to help them get the financial relief they need and the second chance they deserve. This full-service legal team is fully committed to giving their clients the best representation possible, and they will guide you through every step of the process. Visit their website to learn more about their expertise and specialized services, or call (402) 362-3618 for an initial consultation with a bankruptcy attorney today.