Are You Bankrupt – Under Which Chapter Should You File Your Bankruptcy?

The times of recession and the phase of bankruptcy can put any one under the situation of distress. A law firm in this regard can be a true blessing. Such firms are capable of providing you with the right advice, how to look after the issues related to bankruptcy and take a step ahead for foreclosures and the workouts.

Are You Bankrupt - Under Which Chapter Should You File Your Bankruptcy?

The BK lawyers can really help you in the matters of stress related to debt, by planning the moves well, organizing meeting for negotiations and to file for the bankruptcy.

Information and Access

The law firms, while handling the different cases, try to educate their clients well. This is done to help you educate yourself with the little and minute details involving the case as this mental clarity removes ambiguity, and provides you with mental peace. Through proper guidance, you may choose the right lawyer for the right case. This is because the factors related to legal issues and the taxes and other such details need diligent attention.

In terms of accessibility, there are firms that may be available for you virtually too. It is done post seeking help from the satellites. The lawyers of very many firms travel to different places in an attempt to look after the cases of their clients very well.

The Chapters under which you may File for Bankruptcy

The filing of bankruptcy depends on two aspects – Income and the assets. The income you may have is important, because this preludes you against the filling of the simplest chapter 7. The assets are considered, because if your property is nonexempt, then you may lose it under the reference of chapter 7, but gain it back under the reference of chapter 13.

Chapter 7 – Debtors that are not Employed and have fewer Assets

If the income levels decrease and there is huge amount that needs to be paid as debt, then it is the primary reason why people apply for bankruptcy. The common factors leading to such situations are like:-

  • Divorce
  • Medical emergencies
  • Death

In such situation, under this chapter, it is assumed that the debtor now will survive out of unemployment benefits granted by the government, but does not have a place to stay and possesses only one car against which the loan is still pending.

In such circumstances this chapter is the quickest and most efficient in getting rid of the debt. In fact this one is the most commonly known case of bankruptcy.

Chapter 13

If the debtor has enough properties to support, then the chapter 7 will not be applicable. If the owner of the home exempts hefty amount of the equity of the home, then the home factor can be considered safe, but if the exemption is not granted, then chapter 7 will not be applicable.

Likewise if the owner of the home keeps it under mortgage, then home can be kept in the chapter 13. Not to forget the income should be available for a household to fund the plan of the repayment.

There are different chapters under which the bankruptcy may be applied for. Seeking the right lawyer for the right job is the main trick.

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