Understand The Differences Between Chapter 7 And Chapter 13 Bankruptcy
Many people fear that if they file for bankruptcy, they’ll lose everything. Often, however, the opposite is true.
Bankruptcy allows families, individuals and businesses to recover from financial downfalls that can happen to anyone and get a fresh start. Medical debt, credit card debt, a job loss, and weather damage to a home or business are just some of the common circumstances that can pull almost anyone into financial hardship. Orr & Almond Attorneys at Law offer compassionate guidance, regardless of your story. We have decades of experience setting people up for financial success and can help you file correctly and efficiently.
With Orr & Almond Attorneys at Law, you don’t have to feel alone. Call us today to learn about how we can help you.
We Will Help You Decide What’s Best For You
There are many differences between Chapter 7 and Chapter 13 bankruptcy. A good differentiator, however, is that during Chapter 7 bankruptcy, many of your debts are erased while during Chapter 13 bankruptcy, your debts are reorganized.
If you file for Chapter 7 bankruptcy, many of your assets may be sold and used to pay back your debts. However, some assets are protected through state and federal exemptions. Many people who file for Chapter 7 bankruptcy are able to keep their homes, cars, and other valued personal possessions.
On the other hand, if your income is at a certain level, you may be able to file for Chapter 13 bankruptcy. During Chapter 13 bankruptcy, your debts are reorganized and a three- to five-year repayment plan is established. After the repayment period has finished, some remaining unsecured debts may be discharged. If you file for Chapter 13 bankruptcy, you may be able to keep some personal belongings and prevent foreclosure on your home or repossession of your car.
For both Chapter 7 and Chapter 13 bankruptcy, some debts cannot be discharged. Some examples include back child support, student loans and judgments form lawsuits. Speak with an experienced attorney to understand which filing may be right for your situation. They can help you navigate the process efficiently to stop creditors from calling and allow you to take the first steps towards financial freedom.
A Local Firm With Compassionate Guidance
Call us in Mobile, Alabama today to discuss which type of bankruptcy filing may be right for your situation. You can reach us at 251-479-1080 or send us a message online to request a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.