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Chapter 7 and Chapter 13: The Basics

Chapter 7 and Chapter 13: The Basics

: Richard West Law Office

choiceWhen making the decision to file for bankruptcy, it is important to weight your options and choose the financial route right for you. For many people, debt is unmanageable, and ultimately, it is no longer feasible to pay off loans and obligations. At this point, working with a bankruptcy attorney is vital, because it will ensure the bankruptcy process goes as smoothly as possible.

Choosing Wisely

Hiring a bankruptcy attorney gives you the representation you need to refinance your future by filing for a Chapter 7 or Chapter 13 bankruptcy. Most people filing for bankruptcy will use one of these two types, so it is important to understand the basics of each before making your decision.

Chapter 7 Bankruptcy discharges most types of unsecured debt. Any significant nonexempt assets will be sold to repay your creditors, but the majority of Chapter 7 debtors are able to keep most of their property. Typically, Chapter 7 bankruptcy cases take several months to complete with the help of a bankruptcy attorney. Chapter 7 bankruptcy is available to people whose income is less than the medium in their state or those who pass the means test.

Chapter 13 Bankruptcy lays out a repayment plan that requires you to repay your creditors at least in part. No property is liquidated under this type of bankruptcy, but to be eligible, you must have a regular income for monthly payments and you must have unsecured debt less than $383,175 and secured debt less than $1,149,525.

When it is time to make the decision to file for bankruptcy, you need a trusted and skilled Cincinnati bankruptcy attorney on your side. Navigating the types of bankruptcy can be difficult, but it is vital to your financial future.