Post by Resolve Law Group on 01/28/2024
Many people hit points in their lives where managing debt becomes overwhelming, and filing for personal bankruptcy may be the best legal option they have. Individuals can file two types of personal bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Each type has its eligibility criteria, benefits, and consequences; the choice between them depends on an individual's financial situation and goals.
Chapter 7 bankruptcy, often called "liquidation bankruptcy," is designed for individuals with limited income and significant unsecured debts such as credit card debt, medical bills, and personal loans. The following are some of the important factors in this type of personal bankruptcy:
Chapter 13 bankruptcy is often referred to as "reorganization bankruptcy" and is for individuals with a regular income who want to create a manageable repayment plan to address their debts. Here are some key features of Chapter 13 bankruptcy:
Bankruptcy is a significant decision, and understanding the types and their implications is crucial for making an informed choice to regain financial stability. If you are considering filing for bankruptcy, a skilled bankruptcy lawyer can evaluate your situation and advise which type would be the best for your situation.
Thank you to our friends at Eric Lindh Foster Law, LLC for their insight into personal bankruptcy options.
Corporate Headquarters
6345 Balboa Blvd., Bldg 2, Ste 247
Encino, CA 91316
Litigation Headquarters
8245 N. 85th Way
Scottsdale, AZ 85258
Copyright © 2024 Resolve Law Group