Chapter 7 vs. Chapter 13

Our Gainvesville Chapter 7 & 13 Attorneys Can Help

Anyone who decides to file for bankruptcy must first be sure that they choose the right option. Bankruptcy isn’t for everyone, and even when it is the best option, you must still determine whether you need to file under Chapter 7 or Chapter 13 of the bankruptcy code. Individuals who take a means test and qualify for bankruptcy will also learn whether they can file for bankruptcy through liquidation or through a repayment plan followed by debt discharge.

Chapter 7 Details

Individuals and couples with extremely low or non-existent income will file under Chapter 7. Their non-exempt assets and personal property will be auctioned off or sold – a process known as liquidation – to repay as much of their debt as possible. The remainder will then be discharged. The downside to Chapter 7 is that the consumer is more likely to lose their home and other personal property to liquidation. The upside, however, is that Chapter 7 is a shorter process that allows consumers to find freedom from their debts much faster than under Chapter 13.

Chapter 13 Details

Chapter 13 is an option for individuals who make less than the national average for disposable income, but still have steady income and can afford some kind of monthly payments. The consumer will negotiate with their lender and come up with a three- to five-year repayment plan. Once the term is up, any remaining debt will be discharged. The downside to Chapter 13 is that the consumer must continue making payments for another few years before the process is complete. The upside is that they will be able to keep their home, vehicle, and belongings.

Why You Need a Gainesville Bankruptcy Attorney

In order to ensure that you file under the chapter that is most beneficial for you, speak with a knowledgeable and experienced bankruptcy lawyer from The Law Offices of Justin McMurray, P.A. today. We have a detailed understanding of federal bankruptcy laws. Let us help you prepare for the means test and file under the chapter that will help you find the relief that you need.

Contact Our Firm

Bankruptcy is a complex process that no one should face alone. Contact our firm today to schedule your free case evaluation and learn how we can help. Our attorneys are supportive and willing to answer any questions you may have. We have lectured and instructed on real estate issues hand have had successes with almost every bank and lender in the field. In addition, we have helped thousands of Florida residents find relief from overwhelming debt and the possibility of losing their home to foreclosure. Contact us right away for assistance from a skilled Gainesville bankruptcy attorney!