Choosing a bankruptcy attorney can be the first in a long line of decisions. The next step is to try and decide what type of case you’re planning to present. Many people struggle to understand the difference between Chapter 7 and 13 and misunderstand where they need to go next. There are major factors that need to be taken into consideration.
Choosing a Bankruptcy Attorney
In this type of sensitive situation, you want to find someone you can trust. You will be discussing personal information and looking for advice and direction. Consider choosing someone with a free consultation available. Bring all of your documentation and paperwork to the first appointment. From there, you can make decisions on what options are available to you.
Chapter 7
If you have a large amount of unsecured debt, you may be eligible to file Chapter 7 bankruptcy attorney. In this case you’re given a clean slate, and will not need to pay any of the money back. If medical bills, credit cards, and personal loans are making your life financially difficult, this may be the solution for you. This process may be quicker than other options available.
Chapter 7 is dependent on your monthly income. You will need to take the means test in order to establish eligibility. If you are having a difficult time understanding the test and the information needed, contact your lawyer to walk you through the process.
Chapter 13
If you are looking to get relief from creditors, but have the opportunity to pay the money back, consult your bankruptcy attorney on Chapter 13. In this case, interest rates can be reduced or other arrangements made and you are able to keep some of your assets. This is an important choice if you are looking to maintain your home and vehicle. It may take some time, but a repayment plan can be established.
There is a chance that you could qualify for both options. If so, consult with your lawyer to see which scenario is better for you. Don’t be discouraged if you are having a difficult time understanding what the best course of action is. This is a tough situation. It can be confusing and hard to understand at times.
