Chicago Bankruptcy Attorney and Types of Personal Bankruptcy

If you've come to the conclusion that the best way to recover financial from your debt woes is to file personal bankruptcy then your Chicago bankruptcy attorney can help you decide which type of personal bankruptcy to file. But basically, there are two different types of personal bankruptcy, a Chapter 7 and a Chapter 13.

Chicago Bankruptcy Attorney and Chapter 7 Bankruptcy

A Chapter 7 bankruptcy is what most people who aren't familiar with bankruptcy think of, with a few misconceptions thrown in. A Chapter 7 does not discharge all of your debts and let you walk away scott free. While each case is different, you can count on most, if not all, of your credit card debt and consumer debt to be wiped away. But there are still some debts that you will be responsible for and your assets may be seized by the bankruptcy court to pay off some of your credit card debt.

Chicago Bankruptcy Attorney and Chapter 13 Bankruptcy

A Chapter 13 personal bankruptcy is very different than a Chapter 7 in that its main goal is not to erase your consumer debt as soon as possible, but is rather to reorganize your debt so that you can repay at least a portion of your debt. After a prespecified term of somewhere between three and five years, any remaining balances on your consumer debt will be written off. Also, with a Chapter 13 bankruptcy your assets aren't at risk like they are in a Chapter 7. People who opt for a Chapter 13 bankruptcy rather than a Chapter 7 either don't qualify for a Chapter 7 or they are looking to protect a home or other valuable asset.

Contact a Chicago bankruptcy attorney to see if you would be better served with a Chapter 13 personal bankruptcy or a Chapter 7 personal bankruptcy.