Jacksonville Bankruptcy Attorney

Chapter 7 and 13 Bankruptcy Differences

Identifying the Right Option for You

Are you considering bankruptcy, but worried about what assets you will be able to keep? Are you interested in starting with a clean slate? Do you just need some breathing room to catch up on your bills? To find out whether Chapter 7 bankruptcy or Chapter 13 bankruptcy is right for you, speak with an experienced attorney.

At Crumley & Wolfe, we will help you determine which bankruptcy protection plan makes sense for you. Our attorneys have detailed knowledge of bankruptcy laws and processes and have helped thousands of individuals and small businesses regain control of their finances. Let us help you get started on the path toward financial recovery.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also referred to as liquidation bankruptcy, allows you to discharge most of your unsecured debt. In exchange, assets and property not considered exempt under the law are liquidated and sold to pay a portion of your debt to your creditors. After the debt is eliminated, you are able to make a fresh financial start.

Some people mistakenly believe that if you file for Chapter 7 bankruptcy, you will lose everything you own. It is important to understand that the law protects certain property from liquidation, including your car, home, and household belongings. Many people who file for this type of relief retain all their assets. However, you must pass the means test to qualify for Chapter 7 bankruptcy.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is essentially a debt reorganization plan that allows you to pay a portion or all of your debt over a period of three to five years. In this type of bankruptcy, your unsecured debt is rolled into one monthly payment determined by your ability to pay. After the designated timeframe is over, any remaining unsecured debt is discharged.

Chapter 13 bankruptcy is often called wage earners’ bankruptcy because it is designed for individuals with a steady income. It is ideal for applicants who wish to protect certain assets, including second homes and personal vehicles. In a Chapter 13 bankruptcy, you can remove junior liens, including second and third mortgages and HELOCs.

To learn more about the types of bankruptcy available, meet with our lawyers at our offices in Jacksonville, Florida and Kingsland, Georgia. We offer free initial consultations from 7:00 a.m. to 7:00 p.m., Monday through Friday.

Take the first step toward financial relief. Call (904) 374-­‐0111 in Florida or (912) 673-­‐7499 in Georgia or contact us online to arrange an appointment today.

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