Filing for bankruptcy is an overwhelming undertaking that can be difficult to understand. It is important to be informed of what the process looks like, and what steps can be taken to be successful after restarting your financial life.
Below is a description of each type of bankruptcy:
Chapter 7 bankruptcy: Also known as “liquidation bankruptcy”, Chapter 7 bankruptcy is the process of filing a chapter 7, which requires you to give up all non-exempt assets to your bankruptcy trustee. Your trustee sells your assets and uses the proceeds to pay off your debts. If you are eligible for chapter 7 bankruptcy, liquidating assets will help you rise from the financial crisis you are facing.
Chapter 13 bankruptcy: Also known as “reorganization bankruptcy”, Chapter 13 bankruptcy allows you to keep your property. This is not allowed in Chapter 7 bankruptcy, but with keeping property also comes the requirement of making a repayment plan. Your repayment plan will precisely lay out how you will pay your creditors. Avoiding foreclosure or repossession is usually the primary reason for filing a chapter 13.
Following these main steps will guide you onto a smooth path to financial stability:
Contact a bankruptcy law firm– In order to be provided with accurate and detailed legal support, you should contact a bankruptcy law firm for assistance through the bankruptcy process. You will be guided through the process by your bankruptcy lawyer.
Deciding on which type of bankruptcy you should file for– Your bankruptcy lawyer will assist you in deciding whether you should file for a chapter 7 or chapter 13 bankruptcy. Between these two different types of bankruptcies, one may be more beneficial over another depending on each individual.
Having the best bankruptcy lawyer for you is essential in determining what bankruptcy you should file for.
If you are considering to file for bankruptcy in the Chicagoland Area, Chang Legal will provide you the best legal support, with the assistance of our leading expert legal team. If you want to receive the chance of having a fresh financial life, contact us today.
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