When you are in financial distress, you need sound & unbiased advice. Bankruptcy can be an option, but only when you have considered other alternatives to repay your existing debts. Hiring a bankruptcy attorney isn’t mandatory by law. You can choose to represent yourself, but DIY bankruptcy may not be a smart step. If you are looking for bankruptcy help in Las Vegas, Nevada, some amazing firms can guide you on your circumstances. In this post, we are sharing more on Chapter 13 and Chapter 7, besides the advantages of hiring a bankruptcy attorney.
Differences between Chapter 13 and Chapter 7
- Chapter 7 bankruptcy is more of a liquidation plan. You can discharge most of your debts, including pending medical bills, credit card dues, personal loans, and unsecured loans. You are selling off your assets to repay the maximum debt possible, and the remaining is discharged. You should be able to retain some of your assets, such as your home and car, provided you continue paying the installments. Some dues and debts cannot be discharged through Chapter 7 bankruptcy, such as student loans.
- Chapter 13 is more about repaying your debts in a planned manner. This is the best option for people who have regular income and can afford to pay back a part of their debts. If you do not qualify for Chapter 7, you may consider Chapter 13 as an option, depending on your circumstances. In this case, you can have as many as five years to repay your debts as per the repayment plan.
Why should you hire a bankruptcy attorney?
Bankruptcy is a legal process, and it can be really hard to understand the complications. While you can expect immediate relief by filing for bankruptcy, there are steps to be followed. Working with an experienced bankruptcy attorney can prevent unwanted mistakes. Also, there is considerable paperwork that your lawyer can handle on your behalf. Your lawyer can advise on the costs, pros, and cons of both Chapter 13 and Chapter 7 so that you can make an informed decision.
Consulting a bankruptcy attorney doesn’t have to be expensive. It is important to understand that bankruptcy is not the immediate option for every person dealing with debts. Let an attorney guide further on managing your financial situation, which can get you a blank slate to start all over again. With genuine advice, bankruptcy can minimize your stress without losing everything you have earned over the years.
