If you find yourself needing to file for bankruptcy, you’ll need an advocate to guide you through this complex process. This is where a bankruptcy lawyer comes in. Filing for bankruptcy is a way for individuals to obtain protection from creditors and can provide relief from some or all of a person’s debt obligations.
Chapter 7 vs. Chapter 13: What’s the difference?
There are two main types of bankruptcy filings: Chapter 7 and Chapter 13. Chapter 7 involves the discharge of most unsecured debts such as credit cards, medical debt and personal loans by the court. Debt such as student loans, alimony and child support as well as tax debt will not be discharged under Chapter 7. This type of filing is often called a “second chance” as it can provide relief from these unsecured debts providing an opportunity to restructure your financial situation.
Chapter 13 generally involves a reorganization of your debts in a fashion that will allow you to repay them and get current. There is generally a 3-5 year time limit on the reorganized payments and debtors can usually work it out to keep their primary residence.
In either case, the rules can be very complex, there