If your debt is out of control and your income does not allow you to pay off your current debts, bankruptcy may be your only solution. However, there are different types of bankruptcy.
For individuals, the most common types of bankruptcy filings are Chapter 7 and Chapter 13. Each option has its own advantages, along with serious limitations.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a type of liquidation bankruptcy. To pay off your debts, a trustee sells your nonexempt property, which may include anything of value that is not essential.
Experienced bankruptcy attorneys in Henderson, NV can help ensure that the items you need are exempt from the bankruptcy proceedings. However, Chapter 7 is only available to those that meet a specific income threshold. If you make too much money, you may need to file for Chapter 13.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy allows you to establish a repayment plan to pay off your debts. Instead of selling off your assets, bankruptcy attorneys help to reorganize some or all of your debts. This option is best for those that need debt relief, but do not qualify for Chapter 7.
Choosing Between Chapter 7 and 13 Bankruptcy
Which type of bankruptcy should you have your bankruptcy attorneys file? The bankruptcy option that you choose depends on a variety of factors, including whether your debt is secured or unsecured and whether you want to retain possession of your property and assets.
For example, Chapter 7 bankruptcy will not save you from foreclosure or repossession. However, Chapter 13 bankruptcy may allow you to create a repayment plan. For help understanding these details, it is best to discuss your options with experienced attorneys, such as the team at Newark & Newark.
Bankruptcy is not a matter that you should consider lightly. Always review your situation with a qualified attorney that specializes in bankruptcy.