Understanding The Different Types Of Bankruptcy
Declaring bankruptcy is not a uniform maneuver for everyone. Once you have made the decision that bankruptcy is right for you, an attorney can help guide you toward either Chapter 7 or Chapter 13 as a means of debt relief. The unique characteristics of each chapter include:
- Chapter 7 bankruptcy: Individuals with incomes below the state of Washington’s median are eligible for Chapter 7, as are those who pass a means test. This type of bankruptcy will free you from most forms of unsecured debt and usually takes about four months to complete.
- Chapter 13 bankruptcy: This type of bankruptcy does not have an income requirement, though there are limits for secured and unsecured debt. Under Chapter 13, you will pay back your creditors in installments, but you can keep your property. These payment plans can last up to five years.
Filing for bankruptcy may seem unpleasant, but it can also be the right path for you to get back on track financially. We understand that even considering such an action means that you are in stressful circumstances, and our attorney takes a caring approach to help you as you aim to reestablish yourself.