If you feel like you are buried up to your earlobes in debt, without the necessary means to pay any of it off, you might decide to discuss the option of filing for either Chapter 7 or Chapter 13 with a bankruptcy lawyer in Gilbert, AZ. Choosing to file for bankruptcy is not a decision to make in haste. There will be several long term effects that you will experience after filing for bankruptcy, so talking to a lawyer about the pros and cons before making the decision is certainly a wise idea.
If you are unfamiliar with the statutes of the U.S. Bankruptcy Code, you might be wondering what the difference is between Chapter 7 and Chapter 13. Although it is more complex than this, the main difference between the two is that in Chapter 7, you must give up some of your assets in exchange for a discharge of your debts by a U.S. bankruptcy court. In a Chapter 13 filing, you do not need to give up your assets because you are agreeing to pay off all of your debts. Sometimes, a person will be denied a Chapter 7 bankruptcy by the bankruptcy judge, but will be encouraged to file for Chapter 13, instead. If a judge sees that you have the income to pay off your debts over a period of time, it is possible that you will be discouraged from filing for Chapter 7, or even denied. This is something you should discuss with your bankruptcy lawyer in Gilbert, AZ before you even file the application, especially if you make a considerable amount of income.
Typically, when someone talks about filing for consumer bankruptcy, most people assume they are referring to Chapter 7 bankruptcy. If you are considering the idea of filing an application for Chapter 7, talk to your lawyer in Gilbert, AZ about your obligations during the process and any expectations that will be placed on you. An experienced bankruptcy lawyer will give you the straight scoop on what you should expect both during and after you are legally declared bankrupt. There are certain assets you own that are exempt from being taken in a bankruptcy case, but you will be required to forfeit all of your nonexempt assets. Nonexempt assets typically include items like second vehicles, second homes, luxury jewelry, valuable heirlooms and collectibles. The list is much more specific than this, so you will need to talk to your bankruptcy lawyer in Gilbert, AZ about all the nonexempt assets that you may own. He (or she) can provide you with a much more detailed list of all assets, as they pertain to you. It is also important to understand that not all debts are able to be discharged in a Chapter 7 bankruptcy filing. Again, your lawyer can give you a much more specific list than this, but basically, the list on debts that cannot be discharged includes child and spousal support, taxes, student loans and legal fines.
Your bankruptcy lawyer can be a very valuable player to have on your side during the trying process of filing for consumer bankruptcy. Not only can your lawyer advise you on your bankruptcy options, but he (or she) can also provide you with alternative debt solutions, negotiate with your creditors and assist you in drafting a Chapter 13 payment plan, if you move in that direction. At a time like this, it is always a good idea to have someone skilled and experienced on your side, protecting your interests and advising you of your rights. Before proceeding with either type of bankruptcy application, the best advice you will receive is to talk with a lawyer first. Click here to learn more.