Nov 26, 2013

Posted by Shanell Calloway in Uncategorized | Comments Off on Chapter 7 or Chapter 13?: Bankruptcy lawyers in Wichita Answer

Chapter 7 or Chapter 13?: Bankruptcy lawyers in Wichita Answer

Bankruptcy is a difficult time for any individual or family. There are usually many questions and bankruptcy law is complicated. It varies state by state, as well. Rules and laws in one state about what an individual or family is allowed to retain after a bankruptcy and what will be discharged (or forgiven) can vary significantly. The biggest question usually revolves around family homes, the next set of questions usually deal with what can actually be discharged in a bankruptcy proceeding. To understand the answer to this, you need to consult an attorney that can address your personal situation. However, understanding the different types of bankruptcy will prepare you so that you can ask the right questions of the right attorney.

There are two different types of bankruptcy: Chapter 7 and Chapter 13. Either of these options will give someone a “fresh” start out of their financial difficulties and they make different requirements on the debtor. In a Chapter 7 bankruptcy, is considered the most potent of the two solutions. For a debtor who successfully discharges his debt in a Chapter 7 bankruptcy, he will walk from court debt-free. The debtor must show the court that, after paying his basic living expenses, there is nothing left to pay creditors. If he has any property that is worth more than his state’s property exemptions in bankruptcy, that property will be taken and sold. This is the result of the forgiveness of all debt. It is likely that you will lose most property you may own. Each state has different rules, however, and it’s important to check with an attorney in yours.

In a Chapter 13 bankruptcy, an assumption is made that a debtor can pay some of his debts, but is in a situation so overwhelming that he cannot pay them all. In a case like this, the court, will arrange a payment plan with creditors and the debtor must adhere strictly to that plan. Typically, the debt is adjusted and can be paid off within 3-5 years. Because the debtor is willing to pay his debt as best he can, he will walk from the court with his home and his property still in his possession.

If you are considering this difficult step, good, solid legal advice is critical. Contact the Newell Law Offices, a Bankruptcy lawyers in Wichita, at Bankruptcyhelpwichita.com for assistance. You need good counsel, and they can provide it.

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