The bankruptcy code provides two primary solutions for borrowers struggling to meet their financial obligations: Chapter 7 and Chapter 13 bankruptcy. While neither program is superior to any other, each is best suited for different financial situations and designed to help you achieve different goals. According to Arnold Law Offices, a respected law firm based in Pell City, AL, choosing the right program from the beginning can help you get the most out of filing and prevent delays later.

Chapter 7 Bankruptcy

A Chapter 7 is recommended for those who have no hope of paying their unsecured debt, presenting the opportunity to eliminate most of it completely. Before your bankruptcy is approved, you will have to pass a means test, and may be required to surrender certain assets to the trustee of the court—they will use them to pay back a portion of your debts. However, the law provides a wide range of exceptions, so your attorney may be able to protect most of your property.

Chapter 13 Bankruptcy

If you've fallen behind on your debts, catching up can seem impossible—especially if your lender refuses to accept partial payments. A Chapter 13 bankruptcy allows you to make your secured credit accounts current with a court-ordered repayment plan, while discharging as much of your unsecured debt as possible. In both cases, the bankruptcy includes an automatic stay that will put an immediate stop to any and all collection efforts, including wage garnishment and repossession.

Deciding which bankruptcy program is right for you requires the insight of a skilled professional with a detailed understanding of the code. Over the years, Arnold Law Offices have developed a reputation for attentive service and high-quality results across a wide range of practice areas. If you're considering filing for a Chapter 7 or Chapter 13 bankruptcy, call their offices at (205) 338-6565 or visit them online today.