Filing bankruptcy can be a very trying time in your life, both personally and financially. We understand how great this strain can be, and will do everything in our legal power to ensure this process is as painless as possible for you.
Chapter 7 bankruptcy is also referred to as liquidation bankruptcy and can actually be a pretty fast process. It's usually done to discharge unsecured debts, such as medical expenses and credit card bills. Chapter 7 bankruptcy filings are one of the most common filings.
During this type of filing the individual, or their lawyer, petitions the court to discharge their remaining debts. In order to get rid of these debts, the bankruptcy trustee can seize any property you own in order to cover your debts.
It's important to work with a bankruptcy lawyer if you want to try to keep certain assets. Bankruptcy codes and exemptions, and requirements can be very confusing, and a lawyer will have extensive experience in chapter 7 bankruptcy filings.
Overall, a chapter 7 filing is best for those who have little income, little property, and large unsecured debts.
Chapter 13 allows you to file for bankruptcy and still keep property, such as a mortgaged home or car. Essentially, this bankruptcy filing allows you to repay some of your debts over time and under better conditions, instead of having anything seized.
You will have a limit of 5 years to repay all of your debts and pay back your creditors, and the entire debt repayment process is executed with supervision from the courts. It is more difficult to qualify for a chapter 13 bankruptcy filing, so it's crucial that you work with a lawyer that has bankruptcy experience. For instance, a chapter 13 bankruptcy works best for people who are behind on payments on a property they're interested in keeping, have debts that aren't too large, wish to protect other co-signers, and have student loan debt.
If you are interested in pursuing a chapter 7 or 13 bankruptcy filing, the Khechumyan Law Offices can help protect your rights and ensure your bankruptcy process goes as smoothly as possible.