Options for Personal Bankruptcy
If you and/or your spouse cannot keep up with all of your personal debts, you may benefit from filing for Chapter 7 or Chapter 13 bankruptcy. Both types of bankruptcy can end with a clean financial slate, however, the process for each is quite different. In determining which type of bankruptcy may best suit your situation, JLT Law will consider your income, expenses, types of debt, assets, property value, and other factors. The following is some brief information regarding each type of personal bankruptcy:
- Chapter 7 – If you qualify for Chapter 7 bankruptcy, you may obtain a discharge of your unsecured debts, including medical bills, personal loans, credit cards, legal judgments, and more. This type of bankruptcy will liquidate certain assets and property in exchange for the discharge, so it may not be right for everyone.
- Chapter 13 – If your income is too high for Chapter 7 or you want to protect substantial assets or property, Chapter 13 can help to reorganize your debts into a manageable payment plan. After completion of your payment plan, your qualifying debts will be discharged. Chapter 13 can also help if you are facing foreclosure or if you have significant debts that are not eligible for discharge under Chapter 7.
In some situations, if you do not qualify for Chapter 7 or 13, bankruptcy under Chapter 11 may be available for personal bankruptcy, as well. Our experienced bankruptcy attorney will explain each type of bankruptcy in detail so you can decide which may be right for you.
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