Which Kind Of Bankruptcy Is Right For Me?
By Joseph P. Doyle
Mar. 16, 2011 2:20p
The Facts You Need To Know
The right to file for bankruptcy protection is a vital one. Any person may file a bankruptcy claim without the help of a lawyer, though this is far from ideal due to the complicated nature of tax law. The main purpose of making a bankruptcy filing is to give you a fresh financial start, without the burden of debt you may have incurred. Bankruptcy can also be used to fight creditor harassment and repossession.
The two most common forms of bankruptcy protection for an individual are Chapter 7 and Chapter 13. The term chapter refers to the specific section of the U.S. Bankruptcy Code that details what each kind can do. We will discuss the specifics in greater detail shortly, but the essential idea is that Chapter 7 is designed to liquidate debt, while Chapter 13 is designed to
reorganize it. It is important that you speak with a lawyer before making any decision, but here is the basic overview:
Chapter 7
This kind of filing is usually beneficial to those with little income and few assets worth protecting. The purpose of this type is to sell off, or liquidate, all the debtor’s non-exempt assets, the proceeds from which are used to pay off the debt. If you have few or no assets to lose, this is likely to be your best option.
Chapter 13
This kind of filing is meant to help those with significant debt to repay, but who also have substantial property that they do not wish to lose to pay off the debt. This protection creates a repayment plan to allow the debtor to slowly pay off a portion of the debt without losing all of their belongings. If you can afford to cover basic living expenses and receive a regular income, this is likely to be your best option.
Contact a Lawyer Today
In all cases, it is essential that you speak with a qualified Chicago bankruptcy attorney to discuss the specifics of your situation. Joseph P. Doyle is an experienced legal advocate who has dedicated himself to helping his clients find hope.
Contact a Chicago bankruptcy attorney for a free consultation.
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