Chapter 13 Bankruptcy
If you are looking for a bankruptcy attorney but aren’t sure what type of bankruptcy suits you best, realize that there are two contrasting types: Chapter 7 and Chapter 13 bankruptcy. The Law Offices of Jason R. Moseley concentrates in both types and can answer any questions you may have about which you qualify for. There are some big differences between the two and you need to be aware that each one sends your life down a different path. Each one is a financial tool designed for two very different financial situations. Understand that there are circumstances and criteria you must meet to be eligible for either type. Many times people who are in the gray area between having too much disposable income and too much debt are required to pursue a Chapter 13 filing.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is designed to free you from credit card debt, medical bill debt, and other unsecured loans. However, you will not qualify if your income is too high and you have an excess of disposable income. The idea is to liquidate your property and assets in exchange for discharging the remainder of your debts. Your creditors acquire the value from your nonexempt property, and you become free of your debt burdens at the additional cost of significantly lowering your credit score. However, if you have too much disposable income you may be forced to file for Chapter 13.
What is Chapter 13 Bankruptcy?
Conversely, Chapter 13 bankruptcy is designed to restructure your debts, create an extended repayment plan, and release you from only a portion of your debts. As opposed to Chapter 7, your assets are not liquidated to pay off your debts and if you qualify you have the ability to maintain ownership of personal property such as your home, vehicles, and nonexempt assets. Many times individuals who face foreclosure on their homes can buy time by filing for Chapter 13. Although, you will still be obligated to pay family law expenses such as spousal maintenance and child support. Think of Chapter 13 proceedings as a way to “catch up” on your debts and Chapter 7 proceedings as a way to wipe the slate clean and start over. A typical timeline for a repayment plan under Chapter 13 is three to five years and can save you from losing everything.
Finding a Local Bankruptcy Attorney
Depending on which type of bankruptcy is right for your situation, you need to either seek the help of a practiced Chapter 7 bankruptcy lawyer or Chapter 13 bankruptcy lawyer. To help you plan for your future, consider utilizing the experience of the Law Offices of Jason R. Moseley. We have years of experience aiding clients in South Bend, Indiana restructure their finances with both Chapter 7 and Chapter 13.
Call us at 574-707-8675 to reach our office in South Bend, Indiana or at 219-472-8391 to reach our Merrillville office.