Chapter 7 & 13 Bankruptcy
Financial relief from bankruptcy has been a part of our economy since the beginning of time. The purpose of bankruptcy is to obtain a fresh start or a reset if you will on your financial burdens relieving the everyday pressures of creditor calls and their harassing letters, lawsuits and possible judgments, garnishments and bank account levies. Our job is to help you understand the bankruptcy process and determine if bankruptcy is the best financial decision for you at this time. You will always receive a free initial consultation with a bankruptcy attorney who can analyze your financial situation, explain bankruptcy to you, and determine the best course of action for your financial success. Once it has been determined that bankruptcy is the best option for you, a firm should assist you throughout the entire bankruptcy process from the pre-filing preparations to a successful discharge of your debts. Immediately, you will feel less stressed about your financial burdens.
Some law firms also had great success with clients whom are self-employed, are small business owners or own several real estate properties. These clients tend to have significant or complex assets and obviously would have never been able to foresee the economic downturn that has taken place in our country.
CHAPTER 7 BANKRUPTCY
Each case is different which is why it is so important to have an initial free consultation with a bankruptcy attorney to determine which chapter best suits your needs. In most cases, however, I found that Chapter 7 bankruptcy is the best and simplest solution to resolving debts. Chapter 7 bankruptcy will discharge all of your debts and allows you to keep certain exempt assets. In order to qualify for this chapter of bankruptcy you must first pass the income requirements mandated by law. This is done via a Means Test. Chapter 7 can be a great fresh start on your way to economic recovery.
CHAPTER 13 BANKRUPTCY
A Chapter 13 bankruptcy is usually used by those who either do not pass the Means Test due to their income or have additional non-exempt assets that they would lose in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy we are able to tackle bigger financial burdens such a tax debt, foreclosures, and business debts. A plan is created specifically based on your income, expenses, assets, debts and ability to pay each month. These plan payments are managed by your bankruptcy trustee for a period lasting no more than 5 years. Chapter 13 bankruptcy is a great tool for those who have more complex income and assets but still need to seek financial relief.
About the Author
Andrew Clifford is a long time client of a Chandler Law Firm at http://www.brown-associates.net and has done extensive research on the differences of Chapter 7 and Chapter 13 bankruptcy.
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