Bankruptcy is a legal process, and it is never a good idea to go through any legal process blindly. Not hiring a proficient bankruptcy attorney to provide the necessary support and advice may just add to the fear and anxiety one already feels. A person’s reputation, assets, credit and financial future may be on the line. The assistance and guidance a bankruptcy lawyer can provide is invaluable. Experienced bankruptcy Attorneys Glendale AZ have handled multiple bankruptcy cases before successfully. They can examine the applicant’s financial situation and help them understand what their options are. Here are important details to know about Chapter 7 and Chapter 13 bankruptcies.
Benefits of Chapter 7 Bankruptcy
Chapter 7 bankruptcy allows debtors to discharge their unsecured debts and start over with a clean slate. Chapter 7 bankruptcy is also known as straight bankruptcy or liquidation. This is because the debtor’s assets may be sold to pay the creditors. However, the debtor is allowed to retain exempt properties, such as clothes, furniture, and appliances. Additionally, wage garnishment is halted, and homeowners are allowed to retain their home equity up to a certain amount. The debtor may also keep their home or car if they can put up with the payment. Note that a person is not eligible for Chapter 7 bankruptcy if they have received a bankruptcy in the last six to eight years, or if, based on their income and expenses they can feasibly complete a Chapter 13 bankruptcy.
Benefits of Chapter 13 Bankruptcy
Chapter 13 bankruptcy is ideal for debtors with a good income, but require more time to pay off their debts. It allows the borrower to pay off all their debts over a period of 3 to 5 years. In Chapter 13 bankruptcy, the applicant is permitted to retain their properties and pay their debts interest free. Since all debts are consolidated into one payment, the applicant can significantly lower their overall monthly payments.
Experienced bankruptcy Attorneys Glendale AZ can provide reliable advice regarding filing for bankruptcy. They can go over the applicant’s financial situation, and evaluate how alternatives to Chapter 7 or Chapter 13 would work for them. The lawyers will then recommend the best option, and guide the applicant professionally throughout the entire process. For more information about the different types of bankruptcy, and how to hire a bankruptcy attorney, Visit Site.