Bankruptcy may be able to offer consumers who are battling with debt just the lifeline they need to get their financial situations under control. It can be a tremendous help for individuals who recently lost a job, are experiencing a medical illness or have experienced other adverse factors affecting their source of income. It’s often a good idea to resolve debt issues before the situation becomes dire since late fees can stockpile, credit scores can become damaged and it can feel like an impossible hole to climb out of. Luckily, bankruptcy assistance may provide significant debt relief, peace of mind and stop the unbearable collection calls.
How Can Chapter 7 or Chapter 13 Help?
Bankruptcy may be able to help in a number of ways including but not limited to:
- It may be able to release debtors from some or all of their debt obligations with a “discharge of debts.”
- It may be able to help with foreclosure prevention.
- It may be able to help you keep your vehicle.
- It may be able to stop certain wage garnishments and/or debt collection harassment.
- It may be able to get your utilities turned on after a disconnection of service.
Types of Bankruptcy
Bankruptcy includes a number of different chapters that may be filed depending upon the specific situation. The chapters include: chapter 7, chapter 9, chapter 11, chapter 12, chapter 13 and chapter 15.
Chapter 7 Bankruptcy & Chapter 13 Bankruptcy
The most common filing types by individuals are chapter 7 and chapter 13. Chapter 7 is the type of bankruptcy that may be able to discharge individuals from debt obligations since it is commonly known as the “liquidation” type of bankruptcy. Chapter 13 may be able to help individuals restructure their debts to make paying them more affordable since it is commonly known as the “reorganization” type of bankruptcy.
Individuals who are considering filing, but aren’t quite sure which chapter to file under should speak with an experienced bankruptcy attorney.
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Other Bankruptcy Articles
For more information related to bankruptcy, review The AmeriTrust Law Group ‘s bankruptcy articles.
The following information does not constitute legal advice and is provided for informational purposes only