It’s easy to be confused when talking about the different types of bankruptcy. Most people are aware that bankruptcy is a way to eliminate debt. What they are not sure of, is whether it’s really in their best interest to file at all. There are some cases where it’s a tough decision. The person may be getting by, but struggling. The person might feel that there is no relief in sight if they continue down the same path month after month making minimum payments on credit cards. For others, they have no choice but to file bankruptcy. They may be garnished and a creditor is taking 15% of their net take-home pay. In other cases, a bank account might be frozen prohibiting that person from making any kind of mortgage payments, car payments or other payments. For others still, there may be a sheriff sale date whereby if they do nothing, they will lose their home forever.
The Right Attorney
Navigating through the minefield of bankruptcy is the job of a qualified bankruptcy attorney. A bankruptcy attorney should be able to determine which chapter you are best suited for under the bankruptcy code and whether or not that system of relief is going to provide a great benefit to you. Some bankruptcy attorneys specialize in chapter 7 which is known as the fresh start and rarely file a Chapter 13 reorganization bankruptcy case. If you are someone who is in need of complex bankruptcy help, then you do not want to go to an attorney that only handles the simple, chapter 7 cases. You want to make sure that the attorney you hire is qualified to handle your case with ease. You want to make sure that your questions are going to be answered on time, with understanding, and with compassion. If the attorney that you’re interviewing or have even hired does not have this ability, then you should seek other counsel.
Two Main Solutions
In some cases, a simple solution is the easiest one. For someone who has very little in the way of assets and has a lot of unsecured debt, then chapter 7 is going to provide the best relief. If, on the other hand, you are a wage earner who has available money per month, and is trying to save a home from foreclosure or reorganize the vehicle payment, then chapter 13 is going to be your best bet. To learn which chapter is best for you, consult with an experienced bankruptcy attorney in your local area. Be prepared to show the attorney two months worth of paycheck stubs, one year of federal tax returns, and all the information concerning your debt. The attorney is also going to want to interview you or have you fill out a bankruptcy intake questionnaire which will assist in the analysis of which chapter is best for you. Provided you take the right steps and provided you bring the proper information to the attorney, you should walk away with a greater understanding of each chapter and most importantly, how those chapters can benefit you going forward.
