There are two main types of personal bankruptcy you can file for, Chapter 13 and Chapter 7. You might be in a position where you owe people money, your bills keep piling up, you credit is maxed out and you can’t see the light at the end of the tunnel. Understanding the types of bankruptcy that exist is a good first step in exploring this option for yourself.
There are two types of personal bankruptcy filings, Chapter 7 and Chapter 13. In a Chapter 7 filing, you will sell your property, that isn’t exempt, in order to pay the back the people and companies you owe money to. With Chapter 13, you will be restructuring your debt and work out a payment plan to pay back your debt.
Chapter 7 bankruptcy is a relatively short process. It can be handled in 6 months or less from the date of the filing in most cases. It provides an opportunity for a new start and is the most common type of personal bankruptcy filed.
Chapter 7 bankruptcy is an option for individuals that can sell their nonexempt property and then use the money they make to pay off debt. After speaking with a MA bankruptcy attorney, you can decide if Chapter 7 bankruptcy is your best option.
Chapter 13 will enable you to restructure your debt and work out a repayment plan to pay off the people you owe money to. This is an option for people who may make too much money to qualify for Chapter 7 bankruptcy. The repayment plan could reduce your interest and debts owed and usually requires repayment in a three to five year period.
If you are currently making money, but are not in a position to pay of your debt immediately, you should consider Chapter 13. Speaking with a bankruptcy lawyer will ensure you take the right path with your bankruptcy filing.
Now that you have a better understanding of the different types of personal bankruptcy filings out there, the next step is to continue your research. Gather questions and concerns you may have and take the time to speak with a MA bankruptcy attorney about your situation.
When you are considering bankruptcy, learning about your options should be a priority. People often feel helpless when they find themselves in financial situations like these. Speak with MA bankruptcy attorneys Matt Desrochers and Associates. Debt issues are not something to take lightly, but it is not as scary as you might think.
