Types of Bankruptcy

Chapter 7 and Chapter 13 seems to be the commonest types of Bankruptcy today. These two different bankruptcy types are different in so many ways and can help different debtors under different situations. You will have the opportunity of understanding the best suitable kind of bankruptcy for your situation if you can take your time and discuss with a bankruptcy attorney on your financial situation. You will also know which one you are qualified for . A free initial consultation will make you start-off with no financial obligation and our law firm represent our clients effectively within Orlando, Florida.

Which type of Bankruptcy is right for you?

It is essential to talk to a Bankruptcy lawyer to ascertain the suitable type of Bankruptcy applicable to your situation. Below are the highlights of what you need to know about the two different types of Bankruptcies.

Chapter 7 Bankruptcy: is ideally good for low income earners and those with little properties which need to be protected from liquidation. Chapter 7 bankruptcy will be ideal for those who have little or nothing left after making payments for their monthly expenses.

Chapter 13 bankruptcy: This is ideally good for higher income earners and those with much assets worth protecting from liquidation.

A chapter 7 may also be referred to as “ liquidation” and under this situation, a debtor surrenders the non-exempt assets to the bankruptcy trustee in order for the asset to be sold and the proceeds given to the creditors.

Chapter 13 bankruptcy on the other hand can be referred to as a re-organization process or a wage earners plan. It involves a process in which a monthly repayment plan is designed for the debtor to repay his debts. This plan do last for a period of 3-5 years . The debts are discharged off at the expiration of the repayment tenure. If you will like to have more information about the different types of Bankruptcy cases, you can contact our law firm.

Contact an Orlando Bankruptcy Attorney today and you will be glad you did.