When filing for bankruptcy, it is essential to list all your debts, including car loans, home mortgages, and other obligations. In a Chapter 7 bankruptcy, all of your property becomes part of a “bankruptcy estate.” However, this does not mean you lose everything. Instead, the court may liquidate certain types of property to repay creditors.
A Chapter 13 bankruptcy, on the other hand, is more like a debt consolidation plan. It allows you to pay off your debts over a specified period. In many cases, the repayment amount is less than the total debt owed, as you only need to pay what you can afford, and the remaining debt is discharged. Chapter 13 bankruptcy is particularly suitable for individuals who are behind on mortgage payments, owe taxes, or have valuable property they wish to protect.
The process of filing for Chapter 7 or Chapter 13 bankruptcy can be complex, making it highly beneficial to have an experienced attorney by your side. At The Mercy Law Firm, we have extensive experience handling both Chapter 7 and Chapter 13 bankruptcy cases. We are committed to leveraging our expertise to guide you through this challenging process.
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Have other questions and concerns? To speak to one of our firm’s representatives, call us so we can discuss your case in detail.