If you’re thinking about filing for bankruptcy, it is essential for you to know the difference between Chapter 7 and Chapter 13 bankruptcy. With the help of John D. Wieser Esq., PC in Rochester, NY, you’ll be fully equipped with the counsel you need to follow through on your bankruptcy claim. As an experienced bankruptcy lawyer, attorney Wieser can help you develop a more thorough understanding of how Chapter 7 bankruptcy and Chapter 13 bankruptcy differ and which one you should file for.

The main difference between Chapter 7 and Chapter 13 bankruptcy is how you eventually pay back your debts. When you file for Chapter 7, you ask the bankruptcy court to dissolve your debt in exchange for your assets. In cases like this, you are assigned a bankruptcy trustee who takes charge of your non-exempt assets and liquidates them to alleviate your debt.

But not all is lost when you file for Chapter 7. In most cases, you’re allowed to keep retirement plans, home equity, public benefits, and certain types of personal property.

When you file for Chapter 13 bankruptcy, you work with the court to develop a plan to repay all or some of your debt. In Chapter 13, the amount you owe will depend on how much income you earn, how much property you have, and the types of debt you owe. Unlike Chapter 7, you do not lose any property or other assets when you file for Chapter 13.

If you would like to learn more about filing for Chapter 7 or Chapter 13 bankruptcy, be sure to give John D. Wieser Esq., PC a call at (585) 328-0660. You can also visit his website to learn more about his legal services.