There are two types of bankruptcy available to consumers: Chapter 7 and Chapter 13. While they both provide debt relief options, it's sometimes hard to know which type of bankruptcy is right for you. Ray T. Kennington, Attorney at Law is a bankruptcy lawyer who has been serving the Ozark, Alabama, area for more than three decades. Here, he discusses three ways to find the right type of bankruptcy for your situation.

Three Ways To Choose What Type Of Bankruptcy Is Right For You

1. Understand The Differences

First, understand the differences between Chapter 7 and Chapter 13 bankruptcy. When you file for Chapter 7, almost all of your debt will be eliminated, essentially giving you a clean financial slate. With Chapter 13 bankruptcy, your existing debt will be restructured into a payment plan that is more feasible for you to repay; this is typically done over a three- to five-year span of time.

2. Find Out If You Qualify

To file for Chapter 7 bankruptcy, you must meet some minimum qualifications. For instance, your income must be low enough to demonstrate that you cannot conceivably pay back all the debt you owe. Also make sure your payments are current on your mortgage and car loans; if not, they may be repossessed during the bankruptcy process. Ray T. Kennington, Attorney at Law, will help you figure out if you qualify for Chapter 7, or if Chapter 13 is a more appropriate route to take.

3. Consider Your Disposable Income

Chapter 13 is often a better choice for those who have some disposable income at the end of each month. With the debt restructuring Chapter 13 offers, that income can be put to good use and can help you break free of crushing debt. If you have a steady income and a significant sum of money you can afford to put toward your existing debt, Chapter 13 is likely the way to go.

Call Ray T. Kennington, Attorney at Law at (334) 445-1200 to schedule a bankruptcy consultation. You can also visit the firm on Facebook and Yelp to learn more. Let Attorney Kennington work with you to find the financial solutions that can free you from your unmanageable debt.