You may be in the unfortunate position of falling deeper and deeper into debt. Your credit cards are maxed out, bills keep piling up, and you are falling further behind each month. You want to explore bankruptcy as an option, so it\’s important that you understand they types of bankruptcy that exist for you and what they mean.
There are two types of personal bankruptcy filings, Chapter 7 and Chapter 13. In a Chapter 7 filing, you will sell your property, that isn\’t exempt, in order to pay the back the people and companies you owe money to. With Chapter 13, you will be restructuring your debt and work out a payment plan to pay back your debt.
Chapter 7 bankruptcy is a relatively short process. It can be handled in 6 months or less from the date of the filing in most cases. It provides an opportunity for a new start and is the most common type of personal bankruptcy filed.
If you are in a situation where you can sell some of your property, that which is nonexempt, and pay off your creditors, than Chapter 7 could be an option. You will want to be sure that after you sell your property, you still have enough to start anew. You should consult with an attorney to see if this is the best option for you.
Chapter 13 bankruptcy is a way of working out a repayment plan to pay off your creditors. You are going to be restructuring your debts. Chapter 13 might be a good fit for you if you own valuable property or make too much money to be eligible for a Chapter 7 filing. Often when you file for Chapter 13 bankruptcy, debts and interest accruing will be reduced. A repayment plan is established usually in the 3-5 year range.
If you need more time to pay off your debt and have an income coming in, Chapter 13 may be a fit for you. Speaking with an attorney will be a good way to go over this option and see if it is a fit.
After reading this article, you should have a better conception of what bankruptcy entails and your various options available. The next step is to speak to a MA bankruptcy attorney to see what type of filing is the best fit for your situation.
When you are considering bankruptcy, educating yourself about the process is important.People often feel nervous when they find themselves in financial situations like these. Speak with Matt Desrochers & Associates, MA bankruptcy attorneys. Debt issues are not something to take lightly, but it is not as scary as you might think.