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The Different Types Of Bankruptcy Explained

The Different Types Of Bankruptcy Explained

When you need to file bankruptcy, an experienced bankruptcy lawyer like those at J. Alexander click this website Watt can help you determine what you qualify for and whether bankruptcy is even your best option. There are two types of consumer bankruptcy that you can qualify for and file, but it is more of a matter of qualifying than it is for just picking one. The two chapters of bankruptcy that you can file are Chapter 7 and Chapter 13, and each has its advantages and disadvantages.

Chapter 7 Explained

Chapter 7 bankruptcy is also referred to as liquidation bankruptcy because under chapter 7 bankruptcy, your debts are all liquidated. Many people worry that Chapter 7 bankruptcy requires them to also liquidate all their assets, but this is not true. Usually, if you are current on your payments, you will be able to keep property.

Benefits of Chapter 7 Bankruptcy

The primary benefit of Chapter 7 bankruptcy is that it gives consumers a fresh start. You can color switch cheats hack go on with your life with a new credit slate, knowing what you can do differently to avoid another bankruptcy in the future. Chapter 7 gives you a second chance in terms of finances.

Chapter 13 Explained

Chapter 13 bankruptcy is also called reorganization bankruptcy because rather than wiping out all of your debt, Chapter 13 bankruptcy reorganizes your visit our website debt and allows you to make payments towards your debt at a monthly premium you can afford.

Benefits of Chapter 13 Bankruptcy

There are actually many benefits to Chapter 13 bankruptcy that many people do not realize. If your home is going into foreclosure or your cars are about to be repossessed, Chapter 13 bankruptcy will allow you to pay the late payments through your bankruptcy payments to keep those things. If you are wondering what type of bankruptcy is right for you, contact a reputable lawyer like any of those at J. Alexander Watt.

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