At Craft Law, we know that legal and financial concerns can consume your life. Serving eastern North Carolina, our goal is to help our clients resolve these issues with the best possible results in the most stress-free way possible. It’s important to understand the different types of bankruptcy before you decide to file.
Types of bankruptcies include Chapter 7: Liquidation Bankruptcy, Chapter 11: Large Reorganization, Chapter 12: Family Farmers, and Chapter 13: Repayment Plan. The two most common types of bankruptcies for individuals in America are Chapter 7 and Chapter 13, and it’s important to know the difference.
A Chapter 7 bankruptcy case is a liquidation bankruptcy case, and most are no-asset cases. In a Chapter 7 no-asset case, the debtor keeps all of their property. When most debtors file Chapter 7, they do not lose any property, but they get rid of thousands of dollars in unsecured debts.
On the other hand, a Chapter 13 bankruptcy case is a repayment plan. This means you must pay a portion of the amount you owe to creditors to a Chapter 13 trustee. This type of bankruptcy can help a debtor to keep their home or car, even if they’re behind on loan payments. However, Chapter 13 bankruptcies can be more difficult to file in comparison.
It may be a good idea to compare the two types of bankruptcies to best suit your needs. Most Chapter 7 cases are completed around four to six months after the date you file your petition, whereas a Chapter 13 case takes much longer – usually at least 60 months. Both types of these bankruptcies offer a discharge at the end of the case. Chapter 7 cases do not require you to have a repayment plan, whereas Chapter 13 cases require you to repay some of your debt back to creditors. The availability of bankruptcies will depend on your income level.
Bankruptcy does not have to be a bad experience. Choose Leslie Craft to be your eastern NC Bankruptcy Attorney. We are also available to assist you, your family, or someone you know with traffic violations and underage drinking citations. Call us today!