Chapter 7 or Chapter 13?

A Schaumburg Bankruptcy Lawyer Can Help You Decide

Chapter 7 bankruptcy and Chapter 13 bankruptcy both provide debt relief. Both are a way out of the frustration and worry of not being able to pay your bills. Choosing which form of bankruptcy is right for you can be confusing. Our Schaumburg bankruptcy lawyers are here to help.

Sorting through your bills, listing all of your debts, deciding on your priorities and talking with an experienced Schaumburg bankruptcy attorney can help you make a decision about filing for bankruptcy — and whether you should file Chapter 7 or Chapter 13 bankruptcy.

At U.S. Law Attorneys, Ltd. in Schaumburg, Illinois, (near Chicago) and Camp Springs, Maryland, (near Washington, D.C.), a qualified bankruptcy lawyer can explain the law and help you make a decision that works for your unique circumstances.

Differences Between Chapter 7 and Chapter 13

Before deciding which chapter to file, you need to understand the purpose of each.

• The purpose of a Chapter 7 bankruptcy is to discharge all debts and get a fresh start. You will be able to keep a certain level of equity in exempt property, even in your home and car. Some debts, like student loans and child support, cannot be discharged.
• The purpose of a Chapter 13 bankruptcy is to protect your equity. Use Chapter 13 to refinance, through the bankruptcy process, that portion of secured debt for which you have fallen behind (“the arrearage”).
• In a Chapter 13 bankruptcy, your debt payments will be reorganized and an affordable payment plan will be established. This is called the Chapter 13 Plan. People often choose the Chapter 13 option so that they can keep the substantial equity they have in their homes and other assets.
• Even in Chapter 13, some debts may still be dischargeable.

In effect, Chapter 13 bankruptcy allows you to reorganize and refinance debt, so that you can make affordable catch-up payments. Chapter 7, the liquidation bankruptcy, allows you to walk away from most debt, except that which finances your home, car, etc.

Let Us Help You Decide Which Chapter Is Right for You

Ask a knowledgeable Schaumburg bankruptcy lawyer about which bankruptcy choice will work for you.

At U.S. Law Attorneys, Ltd., we have the experience and knowledge to guide you through bankruptcy law and determine the right choices for you. The first consultation is free. Contact us and make an appointment. The sooner you begin the process, the sooner the worry will be behind you.