Chapter 7 and Chapter 13 bankruptcy both offer advantages to borrowers drowning in debt, but each is tailored for different financial situations. A successful bankruptcy petition depends partly on selecting the best program for you, which is why you should consult a skilled bankruptcy attorney at The Gil Law Firm in Dothan. A lawyer will help you decide between these two popular consumer bankruptcy programs.
Chapter 7 Bankruptcy
Also known as a “liquidation,” a Chapter 7 is typically best for those who have no chance of paying off their debts, whether through unemployment or other significant life changes. In this type of bankruptcy, almost all consumer debts can be completely discharged. In return, the trustee of the court has the right to claim some of your assets and sell them to pay back your creditors. An experienced bankruptcy lawyer will ensure that you get to keep as much of your property as possible.
Chapter 13 Bankruptcy
This program is ideal for helping families who have experienced a temporary reduction of income get back on track financially. In a Chapter 13, you'll be able to pay back your secured debts through a court-administered payment plan, while much of your unsecured debt gets discharged. Because you're paying off your debts, a Chapter 13 typically does not require you to surrender your personal property to the court.
Whatever your financial situation, The Gil Law Firm will help identify the best debt relief option for you. Visit their website to learn more about their array of legal services, or schedule a consultation with a skilled attorney by calling (334) 673-0100 today.