The Difference Between Chapter 7 & 13 Bankruptcy
Chicago Bankruptcy Lawyer Explains
At Law Offices of David Freydin, we have a thorough understanding of
bankruptcy law. Our highly trained staff will be able to provide you with all of
the information you need to make a decision regarding filing for bankruptcy.
With our learned advice, we will recommend what type of bankruptcy we
feel is appropriate for your financial circumstances. Having an experienced
Chicago Bankruptcy attorney at your side will ensure you obtain the results
you need from your bankruptcy. Below are some differences between the
two most common types of bankruptcy.
Chapter 7 Bankruptcy
If you have overwhelming debt that you find you just cannot pay due to
circumstances beyond your control, such as the loss of a job, divorce
or unexpected medical bills, then
Chapter 7 is possibly the type of bankruptcy you need. If you do not have the means
to repay your debt and just don’t see a way out, the bankruptcy
laws allow you to file for this type of protection from your creditors.
When the bankruptcy is filed, all of your liabilities and assets will
be reviewed by the Court and all of your creditors will be notified of
the pending bankruptcy.
Most people are allowed to keep their assets, such as a vehicle or a certain
amount of money in a bank account. Filing a Chapter 7 bankruptcy is a
rather easy procedure, taking only a few months, but your creditors must
stop contacting you as soon as your bankruptcy is filed. For complete
information on a Chapter 7 bankruptcy filing, contact our experienced
and caring legal team for a free consultation.
Chapter 13 Bankruptcy
Chapter 13 filing, if you have a steady job or regular source of income such as from
a small business or pension, than you may be eligible for this type of
a bankruptcy. If you have incurred too much debt and are being harassed
by creditors or being threatened with lawsuits or garnishment, this bankruptcy
will stop the collection calls and allow you to restructure your debt.
As with Chapter 7, your assets and liabilities will be reviewed. However,
in a Chapter 13 bankruptcy, your debt will be restructured so you will
be able repay it over time.
The main difference between Chapter 7 and Chapter 13 is your ability to
repay your debts. To determine this, the court requires us to evaluate
your case through a “means test”. Basically, do you have the
“means” to repay your debt? If it appears that you have the
ability to repay some of your debt, then a Chapter 13 bankruptcy may be
more appropriate. At Law Offices of David Freydin, we will carefully review
your financial situation with you in order to determine the best course
of action for your specific circumstances.
With the various issues that come into play with bankruptcy, we urge you
to contact Law Offices of David Freydin to ascertain which type of bankruptcy
is best for you. Our free initial consultation will allow you to have
your questions answered. Contact a Chicago bankruptcy attorney from Law
Offices of David Freydin to discuss your bankruptcy or other legal debt