Types of Bankruptcy

Chapter 7 & Chapter 13 Bankruptcy Lawyer

Making the decision to file for bankruptcy is only the first step in the process; determining which type of bankruptcy to file for is the second. There are several different types of bankruptcy; Chapter 7 and Chapter 13 being the two most common. The type that you choose to file depends on the details of your specific situation. Each one offers different benefits. At our firm, the Law Office of Joseph P. Doyle, we feel that a full evaluation of your individual situation is the only way to advise you correctly about filing for bankruptcy, or even taking another legal action, such as one of the many alternatives to bankruptcy. Talk to us at our firm, and we can help you get your financial troubles under control.

About Chapter 7 and Chapter 13

Chapter 7 Bankruptcy: Chapter 7 bankruptcy is the most common type of bankruptcy filed by individuals and married couples. It gives the maximum debt relief, as debt is discharged. Although there is the potential for liquidation of some assets for some people, generally, those who file lose nothing, as their assets fall within the state's exemptions. Once you file for Chapter 7 bankruptcy, there is an immediate halt to all debt collection efforts. Also, once it is successfully completed, you will be discharged from all eligible, unsecured debts. This can include medical bills, credit cards and utility bills, among others.

Chapter 13: This type of bankruptcy is best used if you have a steady, reliable source of income. Chapter 13, which is also known as "individual reorganization," you a structured repayment plan is devised and you have a period of 3 to 5 years to pay off your creditors under that plan. In exchange for paying back your debts under Chapter 13, you are entitled to retain your property. This is an excellent option for those that own too much property to file Chapter 7, are in trouble with a mortgage, or don't wish to file Chapter 7.

If you are considering filing for bankruptcy, find out which type is best suited for your specific situation by contacting the Kane County bankruptcy attorney at Joseph P. Doyle. Contact us today.