With the different choices you have in filing for bankruptcy, it can be a little confusing. This is where having an attorney working on your side can make a big difference. Your attorney will first sit down with you and go over your financial records. This will mean taking a look at all of the bills you owe as well as your income and property. This will assist your attorney in knowing which type of bankruptcy will best help you in your financial situation. Your Professional Bankruptcy Lawyer Granite City IL will be able to fully explain your options and assist you through the process of making a decision.
What are the Most Common Types of Bankruptcy Available?
Chapter 7 is one of the fastest bankruptcy filing statuses. This can typically be taken care of in around six months and involves the liquidation of all of your non-essential assets. Essential assets include, your car, home, furniture and clothing. You are allowed to keep all of these items, but extra property and assets you own will be sold to try and pay your creditors back for the debts you owe. In this type of bankruptcy, a trustee will be charged with being over your case. This trustee will work with your creditors, having the goal of liquidating as much of your assets as possible, to pay them back. In some cases, the trustee will be able to absolve you of a portion of your debts through the bankruptcy process.
Chapter 13 bankruptcy takes the longest amount of time to complete, but does not involve the liquidation of your property. In most cases, you are allowed to hold onto your non-essential property as well. In this type of bankruptcy, the judge will look at your monthly income, to determine a reasonable payment amount you will be required to pay. This payment will be distributed to all of your creditors, assisting you in paying off your debt in a period of three to five years.