Bankruptcy Attorney – What You Need to Know about Chapter 7 and Chapter 13

You may have some basic questions regarding filing for bankruptcy. Learn how a bankruptcy attorney can assist you during economic hardships with Chapter 7 and Chapter 13.

Many people have questions prior and during their consultation with a bankruptcy attorney. For example, during tough economic times, people struggle to survive. They may have lost their jobs or have hours cut so drastically, that they can't afford to pay bills. Many people have faced foreclosure during the economic slump. One of the main questions that people ask the bankruptcy attorney is whether or not they can retain their homes. The answer to that question depends mainly depends on the type of paperwork that is filed. If you file for Chapter 13, you may be able to keep your home. Chapter 13 can help you to rearrange your payments so that you can pay the past due amount on your home. You should talk to a bankruptcy attorney, but this may be the best option to try to save your home. You do have to make sure that you have enough income to pay for your current payment amount and make partial payments to pay for the portion that you are behind. Talk to your lawyer if your only wish in using the filing is to save your home, because there may be some other alternatives available to assist you in paying the debt back over a period of time.

Most people want to know if a filing of either Chapter 13 or Chapter 7 will keep them from having to repay their debts. The filing can help eliminate some of your debts, but the filings may not eliminate all of them. Common debts that people have include, credit cards, loans, or debts from spending time in a hospital or due to an accident or illness. Chapter 7 is usually more likely to help you to eliminate the debts. You will have to ask your bankruptcy attorney if you are eligible to keep your home after this filing, however. A Chapter 7 filing usually liquidates your assets to pay off your debt, but you can keep some of your belongings, including your home in some cases. The answer to whether you can keep your home after filing depends on several factors, including the state in which you reside and the type of equity that you have in your home. You will also need to ask your bankruptcy attorney if you qualify for Chapter 7 since the qualifications to file have gotten more stringent since laws changed.

If you file for Chapter 13 be sure that you can repay your creditors because if you miss a few payments down the road, the trustee to your case can petition the court to have your entire case dismissed. Your bankruptcy attorney can assist you in determining if Chapter 13 is your best option. With Chapter 13, you usually keep your belongings but you must agree to pay the people that you owe over a length of time. You are actually organizing your debts to pay them back. So, if you agree to make payments and you falter, you can end up in bad shape, unless you can prove to the court that you can get back on track and the court decides in your favor. You have to have a regular income that is high enough to pay your debts.

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