Discussions about personal or consumer bankruptcy on the Internet often describe the processes involved with Chapter 7 and Chapter 13 bankruptcy separately. At Allen Wellman McNew Harvey, LLP, we do not view bankruptcy as a simple one-size-fits-all legal analysis.
Each type of personal bankruptcy will stop creditor harassment, foreclosure, repossessions and other debt collection efforts. The two types of bankruptcy have specific differences, including eligibility requirements. Some individuals are eligible to choose between filing Chapter 7 or Chapter 13. It is critical that your attorney provides a full analysis of not only your eligibility, but the goals you hope to achieve in seeking debt relief.
What Is Chapter 7 Bankruptcy?
In general, Chapter 7 bankruptcy is frequently called liquidation or straight bankruptcy. Those who qualify, based on income and other factors, can obtain a discharge of many kinds of debt, including credit card balances, medical bills, personal loans and other similar types of debt. It is a common misperception that you will lose everything in a liquidation bankruptcy. Many people who file Chapter 7 are able to retain their possessions and gain a fresh start through the discharge of debts.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is commonly referred to as the wage earner's plan. An individual or married couple who have reliable income may qualify for Chapter 13 to reorganize debt. A payment plan is created to repay some or all of what you owe over a period of three to five years. Any remaining balances owed on unsecured debt at the conclusion of the payment plan are discharged, providing you with a fresh start.
How An Experienced Bankruptcy Lawyer Can Help You
A Chapter 13 bankruptcy is a creative tool that may be highly beneficial for people who want to protect nonexempt property or who need to get caught up on specific past-due payments to protect their financial interests, such as a home loan, back taxes or student loans.
When you work with our Chapter 13 and Chapter 7 bankruptcy lawyers, we will diligently evaluate all aspects of your finances, your assets and your goals. We can advise you on the benefits of filing bankruptcy, tailored to your unique situation.
Let Our Knowledgeable Lawyers Answer Your Questions About Bankruptcy
You likely have questions about how bankruptcy can eliminate your financial problems. To learn how bankruptcy can provide you with a fresh start, call 317-468-2365 or 866-958-6354 toll free, or send us an email to contact the firm. Our main office is in Greenfield. We also meet clients by appointment in our satellite offices in New Palestine and Indianapolis.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.