Understanding The Different Types Of Consumer Bankruptcy
Chapter 7 and Chapter 13 are the two types of bankruptcy most consumers use to obtain debt relief for themselves and their families. Each option has its benefits and challenges. Because each person will face a different set of circumstances, the first step should begin with learning the differences between Chapter 7 and Chapter 13:
- Chapter 7 bankruptcy: Also known as liquidation bankruptcy, this option allows individuals to seek debt relief from credit card bills, medical debt, unsecured personal loans and certain income tax liabilities. It is important to note that student loan debt, past due child support payments and court-ordered settlements may not be discharged through bankruptcy. During a Chapter 7, a bankruptcy trustee will assess all of an individual’s assets and determine if any assets are eligible for liquidation to repay or partially repay the creditors.
The lawyers at Feinman Law Offices advise clients on taking either state or federal exemptions to protect as much of their property as possible. For the majority of families this means keeping almost all, if not all, of their assets, excluding luxury items or secured property, such as a homestead. Learn more about exempt versus nonexempt assets.
- Chapter 13 bankruptcy: This form of consumer bankruptcy is also called an individual reorganization bankruptcy, and is not available to corporations. For those who wish to protect secured assets such as their homestead, Chapter 13 may be the best method to do so. An individual is still responsible for his or her debt, but a manageable repayment plan is established, allowing the party to stretch payments over a three- to five-year period.
Worried you might lose your home? Learn more about how to save it through bankruptcy or foreclosure defense. Then, call Feinman Law Offices at 978-494-6669 or use this email form to set up a free initial consultation.
Protecting Your Financial Interests Now And In The Long Term
Effective bankruptcy representation relies on an attorney’s ability to address the client’s short-term financial and legal issues, while positioning the individual for long-term solutions. At Feinman Law Offices, our approach is built upon this principle.
Andover attorney Michael Feinman has been providing effective bankruptcy representation to individuals and families for 30 years. Mr. Feinman helps clients assess their consumer bankruptcy options based on their individual circumstances and goals. In the event that neither Chapter 7 nor Chapter 13 is right for an individual, the law firm may advise against filing bankruptcy or recommend to postpone the filing for a period of time.
Free Consultation About Whether Chapter 7 Or Chapter 13 Is Right For You
Feinman Law Offices is pleased to provide a free bankruptcy consultation to clients in Lawrence, Lowell and Haverhill, or anywhere in northeastern Massachusetts or southern New Hampshire. Schedule yours today by calling 978-494-6669 or by filling out this email form.
We are also committed to providing useful information for clients with questions about their options for debt relief. Learn more about the basics of bankruptcy, including Chapter 7 and Chapter 13 eligibility requirements, payment plans, exemptions and the bankruptcy process.
If you are an individual with primarily household or consumer debts, pursuant to the provisions of 11 U.S.C. §528(a)(4) of the Bankruptcy Code, as amended, you should be advised that this office may be considered to be a “debt relief agency” in that this office provides assistance to individuals to file bankruptcy to seek relief pursuant to the provisions of the Bankruptcy Code.