There are two most commonly filed chapters of bankruptcy for consumers: Chapters 7 and 13. Each have a goal of eliminating debt, but do it entirely differently from one another. Qualifying for one or the other depends on the annual median income for the household, but it is not always a definite answer. Regardless of which chapter is entered, the result is the same: you are entirely free from your debt for the rest of your life.
Chapter 7 bankruptcy involves liquidating eligible assets in order to pay off creditors. But, even though this is a technical requirement, it is not an absolute. In other words, not having any assets to sell does not mean that you are ineligible for bankruptcy altogether. Bankruptcy is something that is open to almost everyone, and Bankruptcy attorneys in Wichita are there to help you get through whatever chapter you ultimately file under.
Filing under Chapter 13 means that the income is too high for Chapter 7, and it is determined that there is enough money left over every month to pay off the bills. To this end, the debt is reorganized through the negotiations of Bankruptcy attorneys in Wichita. Your creditors ultimately have to accept the payments that are offered as it is a court ordered situation. All of your outstanding debts are reduced to an amount that you can comfortably pay off each month. The payment is sent to the court, and your trustee is responsible for distributing the payments to your creditors. However, not all of your creditors will receive money as debts are paid off according to their priority. A mortgage is paid first whereas a store credit card is paid last.
You won’t know what chapter you are going to file under until you fill out the means test and discuss it with your lawyer. The lawyer is there to help you make the best choice for you. One chapter may make more sense than filing under the other, and the lawyer is your guide for this decision.
Do you have questions about filing for bankruptcy? Contact Business Name to speak to an attorney today about setting up a consultation.
