All chapters of bankruptcy have the same result, although there are different ways to get there. The most common chapters filed by consumers are known as 7 and 13 due to their structure and method of repaying debt. One is about liquidating any assets of value and the other creates a repayment plan that lasts up to five years. Which chapter of bankruptcy you file depends on your individual financial situation. You won’t know which chapter you can file under until you take the means test. But before you get to that point, talk to Wichita Professional Bankruptcy lawyers first.
The rules regarding each chapter of bankruptcy may seem hard and fast, but not necessarily. You may qualify for a Chapter 7, but prefer to go through a Chapter 13 instead. Alternatively, you might think you make too much money for a Chapter 7, but the lawyer can find legal ways to have you file under this chapter. There is no one right answer for your situation as each person has a unique financial picture. It takes talking to lawyers such as ones from Business Name to find out exactly what your choice is going to be.
Chapter 7 requires that you liquidate your assets to generate cash to pay off your creditors. However, if you have few to no assets of value and what you do own has outstanding balances, the court is not interested in them. There is no desire to beggar you further and take away everything you own. There are a set of rules known as exemptions that allow you to keep certain things from bankruptcy on top of what you own and owe on.
If you make too much money and have valuable assets, you can work towards qualifying for a Chapter 13. This chapter of bankruptcy reorganizes your debt so you can pay it down, then have the balance eliminated at the end of the filing. There are variables at work in this chapter that determine how long your bankruptcy is going to last, and working with a lawyer helps you figure them out.