All of us know at least one person who has faced a situation where they had to file a bankruptcy; some of us have faced it ourselves. We understand how difficult the situation is and how it becomes difficult for us to decide how to proceed in a way that will allow us to be able to come out with some benefit. However, we don’t really know enough details to make an informed decision, and that is where F&A Firebaugh Andrews P.L.L.C Bankruptcy Law Firm steps in. The firm has highly knowledgeable lawyers who focus on your need and what will benefit you given your unique circumstances in order to give you the best possible options and provide you with all the help you need. One thing we know about filing a bankruptcy is that there are primarily two codes it can be filed under for most individuals: chapter 7 and chapter 13, however, most of us don’t know how these codes are different and which one applies to which situation. Here’s an insight to these:
Chapter 7: Chapter 7 is for those people who can’t afford to pay their creditors any more. This is mostly used when a person is facing unemployment, or has large medical expenditure, marital problems, or huge overextended credit. Now, in such situations, a lot of people end up selling all their assets to pay off the creditors and are left with nothing to make a fresh start. When chapter 7 is used, you can exempt certain assets from being sold. In fact, most people filing Chapter 7 are able to keep their home and cars. How it works is, a trustee is assigned to collect and sell non-exempt assets, he/she then will pay the creditors with any money that is collecting and the remaining debt is nullified.
Chapter 7 bankruptcy usually comes into play when a person does not have any other sources to pay off the creditors and with the help of F&A Firebaugh Andrews P.L.L.C Bankruptcy Law Firm, it becomes easier to find a way to do that without losing everything.
Chapter 13: Chapter 13 is for those people who want to reorganize their finances and create a payment plan that they can afford. Here, people can choose from payment plans ranging from a 3 to 5 year period and can get rid of their debt systematically without having to put everything they have toward high monthly payments and without being harassed by the creditors every month. This is a very good way to manage payments to creditors if you have a regular flow of income. When you file for bankruptcy under chapter 13, the lawyer assigned to you will first let you explain your financial goals, then help you create a plan, fill out the paperwork, and appear at the court hearings.
Chapter 13 Bankruptcy is usually for those who want to manage and reduce huge payments like their car loans, income taxes liabilities, to get relief from a second mortgage, or simply to reduce the mountain of high monthly credit card payments. It is also the best option to stop a foreclosure sale and be allowed up to 5 years to make up the payments that you are behind on. One huge benefit with this code is that you don’t need to get rid of any of your assets; you can keep all of it.
For a better understanding, you can visit bankruptcyfilingfees.com.