Sometimes, our finances get a hold of us and we cannot grasp control over our monetary situations without the help of an external force. In these cases, when our debts become too much for us to handle on our own, bankruptcy may be the right option. Many people don’t realize the differences between filing for Chapter 7 and Chapter 13 bankruptcy, though these are necessary for unique circumstances. Finding the right option for you depends on your particular situation, including your income, debts, assets, and more.
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is meant for those in a financial situation so dire they need to have their general debts, including those of credit cards and medical bills, completely wiped out. For those who choose to go the Chapter 7 route, they will be appointed a trustee to administer the case, whose role it is to sell your nonexempt property in an effort to pay back your creditors. This is the best option for those who are of lower-income, who simply want a chance to start over without unsecured debts.
Chapter 13 bankruptcy is quite different in that it is designed for those who can pay back a part of their debts in a reorganized repayment plan. Many people must file for Chapter 13 bankruptcy when they make too much money to qualify for a Chapter 7 bankruptcy. In Chapter 13, you can keep your property, and the plan is to make payments to get caught up on your missed payments. The reorganizational nature of this type of bankruptcy allows those who are interested in simply having a chance to catch up on their debts the opportunity to do so.
Determining the correct plan for you depends on the specific circumstances you are in, and can only be accurately determined with the help of an accomplished and knowledgeable Harrisburg bankruptcy attorney, such as ours at Dethlefs Pykosh & Murphy.
Contact Our Trusted Harrisburg Bankruptcy Attorneys Today
Dethlefs Pykosh & Murphy is led by results-driven and compassionate Harrisburg bankruptcy lawyers with a wealth of skill and experience, qualities you will want by your side throughout this challenging process. Our legal team understands few things are quite as devastating as having to deal with financial concerns you didn’t anticipate, which is why we want to do everything possible to ensure you and your rights are protected. Allow us to guide you through the bankruptcy process with ease.