For many borrowers, filing for bankruptcy is the best path toward a life free of debt. If you’ve run out of options for paying down your debts, Chapter 7 bankruptcy allows you to eliminate them completely, while Chapter 13 affords qualified borrowers the opportunity to establish a plan to catch up on missed payments. Sam Turco Law Offices explains how to initiate filing for these valuable protections.
Filing for Chapter 7 Bankruptcy
The first step under Chapter 7 bankruptcy is analyzing your debt and property exemptions. Some debts, such as child support arrears and student loans, are not dischargeable in Chapter 7, so determine which debts you can eliminate to keep as much of your property as possible. If Chapter 7 appears to be your best option, you will have to pass a means test demonstrating that you are unable to pay off your debts before filing the bankruptcy forms.
Filing for Chapter 13 Bankruptcy
Because it requires the submission of a detailed repayment plan, the Chapter 13 bankruptcy filing process is often more complex. After determining the value of your non-exempt property, you must calculate the amount of priority debt you're obligated to repay. After creating your payment plan, you will have to submit the forms to the court, then appear at a hearing to confirm the details of your arrangement. If the trustee decides your payment plan is unrealistic, they may offer suggestions or require you to submit a revision.
No matter what type of bankruptcy you pursue, having a skilled attorney is instrumental in achieving the best outcome. Sam Turco Law Offices has guided Lincoln and Omaha, NE, debtors through the complexities of the process for over 20 years, providing individualized attention to all of their clients. For more information about Chapter 7 and Chapter 13 bankruptcy, visit their website or Facebook today. If you're ready to talk to an attorney, call their offices at (402) 614-7171 for a consultation.