Know How to Handle Chapter 7 and Chapter 13
A lot of men and women around the U.S and in the state of Georgia have to make the hard decision every day of whether or not they should file for bankruptcy. For some, bankruptcy can be the last of a long list of options to help them achieve some form of debt relief, so that they can attempt to continue living their lives the way they did before their debt problem. For others, it simply doesn’t work out for them and they continue their foray into the deep, dark crevices of debt.
If you have found that you are considering filing for bankruptcy, have you thought about what chapter of bankruptcy you are going to file for? Do you know the difference between Chapter 7 and Chapter 13 bankruptcy? If not, continue reading below to find out.
Chapter 7 – When you file for Chapter 7 bankruptcy, you are more or less asking the court to discharge or get rid of a large amount of the debt that you owe. However, for this discharge to take effect, the bank or trustee can reposes or take any property that is yours and that is not on the exemption list (this differs in every state). After the trustee claims your property, they can sell it or distribute it however they see fit.
Chapter 13 – Unlike Chapter 7 where you receive a discharge of your debt, Chapter 13 allows you to pay back the debt that you owe through a payment plan that lasts anywhere between 3-5 years. The amount of money that you have to pay back is determined by how much money you make at your current job, the kind of debt that you owe, how much debt that you owe, and how much property that you currently own.
If you think that filing for bankruptcy can help your debt situation, it’s always best to contact an Atlanta bankruptcy lawyer who can walk you through the complications and intricacies of both Chapter 7 and Chapter 13 bankruptcy. This way you can find which chapter best suits your unique needs, so that you can get back on your feet sooner rather than later.