Filing for bankruptcy can help get your finances in shape. But choosing the right chapter and navigating complex legal matters can be challenging to navigate alone. This post will cover chapter 13 bankruptcy—what it is, how it works, and how a bankruptcy lawyer can guide you along the way.
Chapter 7 versus chapter 13 bankruptcy
Many of us try not to think about bankruptcy. Even those who worry about needing bankruptcy lawyers don’t often consider that there are different kinds of bankruptcies. To better understand why you need a bankruptcy lawyer for filing chapter 13 bankruptcy, it’s essential to understand exactly what chapter 13 bankruptcy entails.
In many ways, chapter 7 and chapter 13 bankruptcies are similar. Both have the purpose of discharging the debtor from unsecured debts. Once the bankruptcy is filed, collection by creditors is put on pause, and the creditors must meet with the debtor to discuss the case.
However, a chapter 7 bankruptcy is distinguished by indicating that the debtor will be unable to repay a significant portion of their debts. The debtor, in this case, will lose all assets deemed unnecessary. Necessary assets are also known as “bankruptcy exemptions.” Generally, a state will have its own limit on what is exempt.
In a chapter 13 bankruptcy, it’s presumed the individual intends to repay at least a significant portion of the debt but will need a few years to do so. Under chapter 13 bankruptcy, there’s generally no seizure of assets. Chapter 13 bankruptcy can be seen as less severe. However, to qualify for chapter 13 bankruptcy, you must file for it and prove you have a viable repayment plan.
How a bankruptcy lawyer can help
Filing for any kind of bankruptcy is a nerve-wracking affair. However, an expert law firm can provide legal services to help you through the bankruptcy process. This assistance can come in a few forms.
Firstly, they can give you advice on whether you should file for bankruptcy at all, or if there is perhaps an alternative financial solution. If you do decide to file for bankruptcy, it’s important to get professional advice on which chapter is best for you.
It’s not just the court system that bankruptcy lawyers can help you with. Attorneys can be a helpful go-between in dealing with creditors and can give you sound legal advice on how to do so. If you’re filing for chapter 13 bankruptcy, they can help develop a suitable repayment plan or even go through the process of modifying it once it’s in effect. When it comes to bankruptcy and insolvency, legal aid is always appreciated.
If you’re worried you might need to file for chapter 13 bankruptcy, don’t wait. You can take a free evaluation right now to help put you on track for receiving legal assistance. LegalASAP is dedicated to helping those in need. Feel free to contact us during operating hours to get in touch with legal representation and advice.