Bankruptcy might look complicated for all individuals, but there are certain attributes that will crack the nut. Each of the chapters of bankruptcy has some of the other attributes that determine the basics and procedures of filing for the same. On that note, individuals who owe money, fall into two categories of bankruptcy, namely-
- Chapter 7 bankruptcy
- Chapter 13 bankruptcy
The characteristics of these two bankruptcies differ in nature, with the creditor and debtor, occupying the scene. Therefore, let’s analyze the attributes and other details of these two bankruptcies briefly!
What are chapter 7 bankruptcy and its essential factors?
For individuals who fall into the category of chapter 7 bankruptcy, need to pay extra attention to their debt situation and payment plays. In simple terms, chapter 7 is a more traditional form of bankruptcy, where the customers, can get their property payments cleared, without having to repay back anything. Also, this type of bankruptcy is good for newly married couples, who owe money to creditors and find themselves in a completely unsecured position.
The basic criteria that chapter 7 demands of its customers are an unstable source of income. You need to be in a position, were paying off the debts seems challenging for you. Therefore, the entire aspect of chapter 7, is handled by the best attorney lawyer, who takes care of your financial resources, until your case is solved. Chapter 7 bankruptcy cost varies with the lawyer you hire and the time taken to solve the whole case.
What is chapter 13 bankruptcy? How is it different from chapter 7?
Chapter 13 bankruptcy NY speaks of a better mode of paying off the debts, with the help of a structured repayment option. Also known as ‘’settlement bankruptcy’’, chapter 13 has the following features:
- With this type of bankruptcy, you are trying to get rid of the debt slowly and steadily, instead of clearing it all at once.
- Individuals can freely restructure their payment options with help from the best attorney.
- Also, a part of the debt can be cleared at first, and the rest can be slowly managed with the settlement plan.
Chapter 13 bankruptcy is only possible for individuals, who do not qualify for chapter 7. In addition to that, customers also need to have a stable source of income as well, so that the amount can be paid off easily. The best part of this bankruptcy is that the amount you owe to the creditors spreads for a particular time frame. This time period can be settled easily, depending on the rate of interest and the years that you opt for. Payment is completely flexible, as per your own financial situation. Monthly payment plans and quarterly options are present. However, you need to maintain a constant touch with your lawyer and Bankruptcy court NY, so as to swiftly conduct the proceedings.
The final verdict:
For both types of bankruptcies, it is important that you start talking to your lawyer and start your case proceedings. For chapter 13, no creditor is brought to the scene and the entire aspect is solved with the help of the repayment plan only. However, in order to get a quick guide on how bankruptcy works, midtownbankruptcy.com provides a complete mature idea. Therefore, your lawyer will help in sanctioning the settlement plan, getting the rates fixed and finalizing the time period.
Therefore, individuals need to take note of the factors, the features, and the criteria, before you talk to your lawyer. Always remember to ask questions to your attorney, in case you are not sure about the procedure!