Share:

The bankruptcy code provides borrowers with two different programs, each designed for those in different financial situations. Chapter 7 and Chapter 13 bankruptcy each offer powerful protections and tools for relieving the pressure of unmanageable debt and allowing borrowers a fresh start to their financial lives. If you’re considering filing for bankruptcy, a skilled bankruptcy lawyer will explain the differences between the two programs and help select the option best suited to your needs.

The Difference Between Chapter 7 & Chapter 13 Bankruptcy

Chapter 7 Liquidation

Chapter 7 bankruptcy is the most familiar and popular of the two options, giving borrowers the opportunity to completely discharge most types of unsecured debt. In addition to credit cards and other consumer accounts, Chapter 7 may also eliminate unpaid medical bills, some back taxes, and a wide range of other financial burdens. In exchange, the trustee of the court may seize some of your assets to pay back your creditors, although many types of personal property are exempt. Hiring a skilled bankruptcy lawyer will ensure you keep as much of your property as possible.

Chapter 13 Restructuring

bankruptcy lawyerFor borrowers with a steady income and secured debts, Chapter 13 bankruptcy may help you avoid foreclosure or repossession through a court-managed repayment plan. Borrowers filing for Chapter 13 may also be able to eliminate most unsecured debts, although creditors must receive at least as much as they would have if you’d filed for Chapter 7. Successful Chapter 13 petitioners will have to show they have the financial resources to make their regular bankruptcy payments while keeping up with all other debts and obligations.
 

With over 15 years of experience guiding borrowers through the bankruptcy process, you can rely on the Swartz Law Office in Batavia, OH, for earnest legal advice and individualized support. Whatever your financial situation might be, their team will help you achieve the best possible outcome and reclaim your life from burdensome debt. To learn more about their services and schedule your free initial consultation with a skilled bankruptcy lawyer, visit their website or call (513) 732-0900, You can also follow their Facebook page for more legal tips.

tracking