If you are exploring if filing for bankruptcy protection is right for you, you may be wondering what type of bankruptcy is right for you. The United States Bankruptcy Code creates “chapters” of bankruptcy:
- Chapter 7: Liquidation Under the Bankruptcy Code
- Chapter 9: Municipality Bankruptcy
- Chapter 11: Reorganization Under the Bankruptcy Code
- Chapter 12: Family Farmer Bankruptcy or Family Fisherman Bankruptcy
- Chapter 13: Individual Debt Adjustment
- Chapter 15: Ancillary and Other Cross-Border Cases
As an individual or married couple, you are most likely to file Chapter 7 or Chapter 13bankruptcy. While both chapters offer many of the same benefits, there are significant differences between what these two chapters offer and how they operate.
Bankruptcy is a complex area of law. When you hire our firm to represent you, we will strive to make the process as smooth as possible.
Considering Chapter 7 or Chapter 13 Bankruptcy
Chapter 7 bankruptcy erases all or most of your debts, without a repayment plan, and in general, allows you to keep most or all of your personal belongings. Chapter 13 bankruptcy is a reorganization of debts, creates a three to five year repayment plan, and also allows you to keep most or all of your personal belongings.
Filing for Chapter 7 bankruptcy is generally the quickest and simplest form of bankruptcy. In general, it takes only four to six months to complete. Though, there are benefits that Chapter 13 offers that Chapter 7 does not. These benefits include an opportunity to make up missed mortgage payments, make up missed car payments, and to “lien strip” an underwater second mortgage.
Both Chapter 7 and 13 are powerful tools to get you out of debt. Both chapters also have the power to stop collection action against you, including harassing phone calls, wage garnishments, bank levies, and lawsuits for unpaid debts.
Learn More About How Bankruptcy Can Help You
When we meet for a free consultation we will go over the pros and cons of the various chapters and help you determine which chapter is best for you. Our goal is to ensure you understand the different chapters of bankruptcy and how filing will affect you and your family.
At the Law Offices of Barbara B. Braziel, we file hundreds of Chapter 7 and 13 bankruptcy cases every year. But our clients are never just a number. You will not be left in the hands of a paralegal. You will have access to your attorney throughout your bankruptcy case.
Find out more about Bankruptcy in our guide: All About Bankruptcy
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.