If you are burdened by debt, you need to speak to an attorney who specializes in bankruptcy law. A bankruptcy lawyer can serve as your advocate, as he or she can gather the details needed to help you organize your payments more proficiently.

Chapter 7 and 13 Bankruptcy Filings

The regular filings for bankruptcy are Chapter 7 and Chapter 13. Therefore, bankruptcy lawyers in Martinsburg, WV can assist you in determining which of these filings to choose, based on your assets, debts, earnings, and overall financial goals.

While a Chapter 7 bankruptcy is a liquidation bankruptcy, a Chapter 13 is designed for reorganization. Because Chapter 7 covers unsecured debts, such as medical bills and credit cards, you must have little in the way of disposable income in order to qualify. Therefore, Chapter 7 is set up for debtors with a low income who have few or no assets and want to get rid of their unsecured debts. Because the process is complicated, it helps to rely on assistance from bankruptcy lawyers to make this type of filing.

Paying Back Your Debt

You will also need to confer with bankruptcy lawyers if you wish to file Chapter 13 bankruptcy. Chapter 13 permits you to retain your property, even if you possess assets that are nonexempt. In return, you are required to pay back all or part of your debts through a plan that you establish with the court. The amount of the payback is contingent on the types of debt and your earnings and expenses.

Usually, Chapter 13 is designed for debtors who are able to make monthly payments who need to catch up on a missed payment or payments, such as mortgage or car payments. They may also need to pay off debts that cannot be discharged, such as child support or alimony.

In order to get a clearer understanding of these kinds of filings, visit such sites as lshermanlawfirm.com. Once you learn about the basics of a Chapter 7 or Chapter 13 filing, you can set up a consultation to get rid of or reduce your debt once and for all.

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