If your debts are piling up, a Worchester bankruptcy attorney may be able to help you. Bankruptcy affords individuals the opportunity to discharge or restructure their debts, including credit card debts, mortgage debts, and car loans. However, before filing for bankruptcy, it is important for you to understand how bankruptcy works and the bankruptcy laws involved. A Worchester bankruptcy attorney will be able to explain your legal options to you and can help you determine which type of bankruptcy best suits your individual needs and financial circumstances.
Under United States bankruptcy law, there are two forms of personal bankruptcy: Chapter 7 and Chapter 13. Your Worchester County bankruptcy attorney will be able to recommend one of these processes, depending upon your financial assets and goals.
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy will allow you to discharge or eliminate most of your debt. However, some types of debt, including student loans, most tax obligations, and child support and alimony, may not be discharged as part of bankruptcy proceedings. There are also certain disadvantages to Chapter 7 bankruptcy filings. In order to file for Chapter 7, you must demonstrate that you cannot pay off your debts. Most of your property and assets, including homes and vehicles, will then be sold off in order to pay your creditors.
During these proceedings, you will still retain your right to your public benefits and pensions. However, the bankruptcy trustee has a right to confiscate most of your personal property.
The entire Chapter 7 bankruptcy process takes about 3 or 4 months to complete.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is different from Chapter 7 bankruptcy. During a Chapter 13 bankruptcy, your debt is reorganized and a workable payment plan is set up. Consequently, you are permitted to keep your house, motor vehicles, and other personal property. However, you must still pay your creditors the value of your non-exempt assets over a period of three to five years, and you must make monthly payments to the bankruptcy trustee during this period.
Chapter 13 bankruptcy releases less debt than Chapter 7. In order to qualify for a Chapter 13 bankruptcy, you must show that you are able to repay your outstanding debts.
A Chapter 13 bankruptcy may be in your best interest if you are in the middle of a home foreclosure or have pending unpaid tax bills. A Worchester County bankruptcy attorney may be able to help you review your finances and understand your legal options.
Choosing Between Chapter 7 and Chapter 13 Bankruptcy
Chapter 7 and Chapter 13 bankruptcies both have pros and cons associated with them. Before you file for bankruptcy, you must first understand how each type of bankruptcy could impact your future goals and personal finances. You must meet the Chapter 7 means test in order to qualify for a Chapter 7 bankruptcy. However, if your monthly disposable income exceeds the means test threshold, you can only file for a Chapter 13 bankruptcy.
The benefit of a Chapter 7 bankruptcy is that it is a quicker and less expensive process. However, following a Chapter 7 bankruptcy, it is more difficult to retain homes, personal property, and other assets. Although a Chapter 13 bankruptcy takes longer and is more expensive, you may still be able to participate in a mortgage modification program. This program would stop foreclosure proceedings on your home. Moreover, under Chapter 13, you do not need to surrender your nonexempt assets.
A knowledgeable and skilled Worchester County bankruptcy attorney can help you to decide which form of bankruptcy is right for you. An experienced attorney will be able to thoroughly review your financial records and can formulate a bankruptcy strategy that meets both your personal goals and financial needs. A lawyer’s guidance can also help to streamline the entire bankruptcy process, giving you peace of mind throughout.
A Worchester Bankruptcy Attorney Can Help
A Worchester bankruptcy attorney can help to take away some of the stress and uncertainty associated with complex bankruptcy proceedings. Before filing for bankruptcy, you should speak with a knowledgeable Worchester bankruptcy attorney. The Law Office of Eric Kornblum is ready to help you discharge your debts or restructure your finances, in order to help you attain the financial freedom you deserve.