Lawrenceville Chapter 7 and Chapter 13 Bankruptcy Options

There are two major types of personal bankruptcy: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Both give individual debtors an opportunity to overcome major debt and make a fresh financial start. But there are significant differences between these two types of consumer bankruptcy.

George R. Belche is a bankruptcy attorney who can explain the differences between Chapter 7 and Chapter 13 bankruptcy, and help to determine which, if either, is right for you. Contact our law office in Lawrenceville to schedule a free initial consultation.

Comparing Chapter 7 and Chapter 13 Bankruptcy

Chapter 7 bankruptcy :

• Liquidates debt. As debt is discharged, a debtor may be required to sell off certain assets to repay creditors.
• May eliminate certain tax debt.
• Takes between four and six months to discharge debt.
• Can be filed once every eight years, or six years after filing under Chapter 13.
• Stops foreclosure, repossession, wage garnishment, and other collection actions.
• Eligibility is determined by taking a means test. An individual who wishes to file Chapter 7 bankruptcy is required to take a means test to determine if he or she qualifies. If the debtor does not pass the means test, filing under Chapter 13 bankruptcy may still be an option.

Chapter 13 bankruptcy :

• Reorganizes debt. A debtor gets set up on a three- to five-year repayment plan in which he or she pays back a portion or all of the debt. The overall amount to be paid back during the course of the plan is dependent on debt-to-income ratio.
• Allows a debtor to keep property that would have otherwise been sold off in Chapter 7.
• Can be filed again two years after the initial filing.
• Stops foreclosure, repossession, wage garnishment, and other collection actions.

Before you consider filing bankruptcy, you should find out all you can about your different options. You should also talk to an experienced bankruptcy attorney who can help you determine your best debt relief option — which may or may not be bankruptcy. Contact our law office in Gwinnett County to schedule a free initial consultation.

"We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code."