We all do our best to keep ourselves out of debt and to honor our obligations. When things have gotten out of hand, and the road out of debt seems endless, bankruptcy often comes up. If you have found yourself in a place where filing bankruptcy has become an option, it’s important to understand what lies ahead.
Chapter 7 and Chapter 13 bankruptcy fit the needs of the majority of people, but which one is right for you?
Choosing Between Chapter 7 and Chapter 13 Filings
It can be overwhelmingly stressful to be unable to honor your debts, especially when you’re receiving constant reminders from your debtors. You may receive messages threatening legal actions such as garnishment, but how do you know which type of bankruptcy will bring you peace of mind?
● Chapter 7: Liquidation Bankruptcy – This is the most straightforward form of bankruptcy, freeing you from the legal requirement to cover most unsecured debts. The term ‘liquidation’ comes from the possibility that you may have to sell off some things you own to repay the debts. Following this step, you will be free of all qualifying debts.
● Chapter 13: Wage Earner’s Plan – If you consistently earn a monthly income, you may be able to retain assets that would have to be sold off under Chapter 7. However, a reorganization plan must be developed to cover these debts over three to five years. Some of your debt may be forgiven, or the interest rates lowered under your repayment plan. Once approved by the court, your creditors must accept it. When all payments on your plan have been made as agreed, the remainder of your qualifying debts will be discharged.
These are basic overviews of the differences between these two approaches. A bankruptcy attorney can help you discover which is right for your situation.
Why Do I Need A Bankruptcy Attorney?
While you are within your rights to represent yourself during your bankruptcy hearing, studies show that your outcomes suffer significantly. Those filing Chapter 7 bankruptcy while representing themselves are 30% less likely to be successful.
Even more troubling, those representing themselves in Chapter 13 are only successful 2.3% of the time. When hiring a qualified bankruptcy attorney, the success rates are 96.2% and 66.7%, respectively.
There’s no greater indicator that hiring a bankruptcy attorney is the best way to ensure you navigate the process successfully. They help you get out of debt by starting with four basic steps.
● Initial Consultation – Many firms offer this step free of charge. They’ll review your situation with you to get an overview of your case.
● Cover Your Options – They’ll discuss the bankruptcy options available to you in detail and let you know what type of bankruptcy you’ll need to file.
● Paperwork Handling – Filing bankruptcy paperwork can be confusing, but these experts have it under control. They’ll ensure it’s completed properly and ready for your court date.
● Representation In Court – They’ll be your voice in the courtroom and ensure you get the best result possible.
Your first consultation will take 30-60 minutes, including your spouse if you are married. The attorney will explain the details to both of you and discuss options for filing bankruptcy without your spouse.
Contact A Bankruptcy Attorney to File Bankruptcy Successfully
Call a reputable bankruptcy attorney today if you’re ready to take the next step towards peace of mind with freedom from debt. They’ll help you start planning your road to a successful bankruptcy hearing by reviewing your debt with you. Together you’ll decide on the appropriate filing Chapter for your case and be with you through it all to a successful bankruptcy hearing.
Hines Law is a bankruptcy firm located throughout the greater Boston area that has been providing trusted representation for debtors in Massachusetts for more than twenty years. We’ll answer your questions and help you find a debt solution that works for you.
Our experience and compassion provide guidance and support through a stressful and challenging financial time. Speak with a bankruptcy attorney today about your options and start gaining control of your finances. Free consultations