Chapter 7 vs. Chapter 13

Ocala Bankruptcy Lawyers Explain How to Choose the Best Form of Debt Relief

There are two chapters of the United States Bankruptcy Code under which an individual or couple can file – Chapter 7 and Chapter 13. Their eligibility for bankruptcy, as well as each Chapter, depends on their results after taking the means test. If the consumer makes less than the national average for disposable income, they could be found eligible to file for bankruptcy and discharge their overwhelming debts.

Understanding Chapter 7

Chapter 7 of the U.S. Bankruptcy Code is available for individuals and couples who have extremely low or no income. To eliminate their debt under Chapter 7, their non-exempt assets, property, and belongings will be sold or “liquidated” as payment for their debt. Any remaining debt will then be discharged. Bankruptcy under this chapter is much faster than under Chapter 13, but there is a possibility that the consumer will lose their valuable property and belongings, as well as non-exempt money and other assets.

Understanding Chapter 13

Individuals who make less than the national average for disposable income but still have regular income can set up a repayment plan with their lender according to Chapter 13. This repayment plan will require the individual to make affordable monthly payments for the next 3-5 years, after which the remainder of their debt will be discharged. Chapter 13 takes longer than Chapter 7, but does not involve liquidation and therefore allows the consumer to keep their home, vehicle, and belongings almost every time.

How Our Firm Can Help

By hiring an attorney, you will have the best counsel and guidance as you pursue the most beneficial type of bankruptcy. Our firm can help you prepare for the means test and file under the chapter that will help you find the relief you need. We have helped thousands of individuals file for bankruptcy and achieve satisfactory results. Our attorneys have also lectured realtors, brokers, and other attorneys on real estate issues in Florida. We are more than capable of counseling you on your options and helping you file under Chapter 7 or Chapter 13. Contact our firm today to set up a complimentary consultation with an Ocala bankruptcy lawyer!

Find a Bankruptcy Attorney in Ocala, FL

For the past 13 years, our bankruptcy and foreclosure defense firm has helped clients file for bankruptcy and find financial freedom once more. We are also capable of helping you pursue alternatives to bankruptcy, such as loan consolidation and debt settlement. Our attorneys have handled successful cases involving almost every bank and lender in the field, and we can help you achieve success, as well. Contact our offices as soon as possible to take the first step toward relief from your unmanageable debts.