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If you cannot make the minimum payments on your credit cards and you’re struggling to cover the rest of your bills, you may be wondering what options you have. An option many people turn to is filing for bankruptcy. There are several different types, and a bankruptcy lawyer from Swartz Law Office in Batavia, OH, can help you determine if you qualify for Chapter 7 or Chapter 13 bankruptcy.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the most common type of bankruptcy and involves the liquidation of assets to pay back creditors. Chapter 7 bankrupt typically eradicates unsecured debt, like medical bills and credit card debt, but not everyone qualifies for it. To be eligible, your income must fall below a certain level. If you file Chapter 7 bankruptcy, a trustee will essentially liquidate all nonexempt assets to pay back your creditors. If you do not have any nonexempt assets, your creditors will not receive any money. An experienced bankruptcy lawyer can assess your situation and determine if you are eligible to file for Chapter 7.

Chapter 13 Bankruptcy

bankruptcy lawyerUnlike Chapter 7, Chapter 13 bankruptcy does not eliminate your debt; rather, it reorganizes it. If your income is too high to qualify for Chapter 7 bankruptcy, you may be able to file for Chapter 13. If you declare Chapter 13 bankruptcy, you get to keep all of your assets, including those that would be considered nonexempt in Chapter 7 bankruptcy. Instead, you will devise a court-approved payment plan to pay back your creditors. There are several advantages of filing Chapter 13 bankruptcy. For example, it often allows homeowners to catch up on missed car or mortgage payments.

If your debt is piling up, a bankruptcy lawyer from Swartz Law Office in Batavia, OH, can help you determine the best way to proceed. Visit their website for more information, and call (513) 732-0900 to schedule an initial consultation. 

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