When faced with mounting debt and a limited income, bankruptcy may be the right option for you. However, deciding between Chapter 7 and Chapter 13 bankruptcy can be very confusing without the right assistance. Bankruptcy attorney Jeremy Bueker at Bueker Law Firm help clients determine the best course of action when tackling debt. The first step is to understand what each type of bankruptcy offers.

Chapter 7 (Liquidation Bankruptcy)

If you have an insufficient income and few assets, Chapter 7 may be the right option for you. This form of bankruptcy discharges most unsecured debts (such as credit card debt) in a period usually ranging from three to five months. To be eligible for Chapter 7, you must first pass a means test, which will determine whether you meet the requirements. 

You can normally keep and pay for secured property so long as you are current on the payments and are willing to enter into a reaffirmation agreement which means the debt does not get discharged.  If you have non-exempt property, the property will most likely be sold by your trustee and the money will be used to pay your creditors who file claims.  Chapter 7 stops lawsuits and garnishments.   Bankruptcy attorney Jeremy Bueker at Bueker Law Firm can help you decide whether you qualify for Chapter 7.

Chapter 13 (Reorganization Bankruptcy)

Chapter 13 is a reorganization plan as opposed to liquidation. The benefit is that you can pay some or all of your creditors over a three to five year plan.  Depending on your assets and income, unsecured debt will be discharged, paid in part, or paid in full at 0% interest.  Short term secured debt like car payments will be paid the value or the collateral or in full.  Long term secured debt like house payments will have any arrearage be paid in the plan along with the regular payments with the debt to be declared current upon completion of the plan.  Chapter 13 allows you to protect co-debtors by paying the debt in the plan.  Chapter 13 stops lawsuits, garnishments, foreclosures, and repossession.

With more than 15 years of experience, bankruptcy attorney Jeremy Bueker at Bueker Law Firm and his skilled staff can capably address the needs of Eastern Arkansas clients looking to get their finances back on track. Schedule your consultation with the Bueker Law Firm today by calling (870) 673-1313, or use the online contact form to get answers to your bankruptcy questions.