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When it comes to filing for personal bankruptcy, individuals have two options to choose from: chapter 7 or chapter 13. Some people may be eligible for both, while others only qualify for one. If you are considering declaring bankruptcy, and you’re not sure which kind applies to you, contact an attorney from Bueker Law Firm in Stuttgart, AR, for quality legal guidance.

A Guide to Personal Bankruptcy From a Leading Attorney

Chapter 7

Chapter 7 is sometimes referred to as “liquidation bankruptcy” because the proceedings require the liquidation of certain nonexempt assets to pay back creditors. Depending on the kinds of assets you own and the amount of debt you have, you might end up paying back none, some, or all your debt through chapter 7. Eligible debts that are not covered via the liquidation will be discharged at the end of the proceedings.

attorneyBecause chapter 7 does not actually require you to pay back your creditors out of pocket, it is a popular approach for discharging debt; however, not everyone is eligible to file. Only those who have little or no disposable income qualify for chapter 7.

Chapter 13

Chapter 13 is essentially a reorganization of debt. It was designed for those who are not eligible for chapter 7 and can pay back at least a portion of what they owe. During the chapter 13 proceedings, an attorney at law will help you devise a reasonable payment plan that allows you to pay back your creditors within three to five years.

If you cannot pay back all your debt, whatever is left after the payment plan has ended will be discharged. Although chapter 13 requires debtors to pay back their creditors out of pocket, many people prefer it to chapter 7 because it allows them to keep even their nonexempt assets.

If you are considering filing for bankruptcy, but you’re not sure which approach is best for your financial situation—or which you might qualify for—turn to a lawyer from Bueker Law Firm in Stuttgart, AR. To learn more about hiring a bankruptcy attorney from their firm, visit their website or call (870) 673-1313.

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