Choosing The Right Form Of Bankruptcy
In this country, the term “bankruptcy” actually refers to several forms of debt relief available under federal law. If you are not educated about bankruptcy law, determining which form of bankruptcy to file for can be very confusing.
That is where we come in. For decades, our law firm has provided superior guidance through the bankruptcy process for residents of Wilmington and Eastern North Carolina. We will help you understand what bankruptcy can do for you, and which form of bankruptcy is the right choice.
Compare Chapter 7 Bankruptcy Vs. Chapter 13 Bankruptcy
The two most important forms of consumer bankruptcy are known as Chapter 7 bankruptcy and Chapter 13 bankruptcy. Though both have the goal of helping people obtain debt relief, they work significantly differently. Here is a brief summary of each:
- Chapter 7 bankruptcy. This is a form of debt liquidation that can erase or greatly reduce the amount of money you owe to creditors. Chapter 7 has helped millions of individuals get out of debt and keep their homes, but it can also make it difficult to obtain credit for the near future. In addition, in some cases, your income cannot exceed a certain amount to qualify for Chapter 7 bankruptcy.
- Chapter 13 bankruptcy. Under Chapter 13 bankruptcy, your debt is reorganized into manageable, regular payments. Depending on whether your monthly income is below or above the state’s median, you will pay off your debt in either three or five years. One advantage of Chapter 13 bankruptcy is that it halts foreclosure proceedings, potentially allowing you to keep your home.
Our lawyers have helped hundreds of people in North Carolina file for bankruptcy. We will help you weigh your options and select the form of bankruptcy that makes the most sense, based on your income and the extent and nature of your debt.
Get Answers To Your Bankruptcy Questions
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.