Understanding Chapter 7 and Chapter 13

Are you going through bankruptcy problems in the Washington D.C., Maryland, or Northern Virginia area? The most complicated and stressful part of going through a bankruptcy is not knowing what to do next and how to deal with your situation. In a case-by-case situation, there will be different ways to resolving bankruptcy complications. Filing under the following are some options of dealing with bankruptcy depending on how the debtor wants to handle his/hers financial crises. In most cases, Chapter 7 or Chapter 13 will be used for individuals but will be important to know the difference between them.

Chapter 7 – At times called “straight bankruptcy.” Filing under this chapter asserts the debtor being discharged from most obligations and undergoing of a liquidation. Any assets such as mortgages or necessary vehicles may be kept, but with the obligation of the debtor continuing to make further payments on these items.

Chapter 13 – Filing under Chapter 13, is a bankruptcy designed for people who want to pay back their debt but can’t. This filing is also known as the “wage earner’s plan.” Allowing the debtor to find a solution to repaying his/hers debt by forming a financial plan of paying back the debts in a certain amount of years.
It is imperative to understand that filling under different chapters has different ways of impacting the debtor’s financial future in various ways. Although the option of being discharged is available by filling under chapter 7 or chapter 13, it’s not always the easiest or quickest way of starting on a clean slate.

Finding yourself filing for bankruptcy can become a big shocker and unexpected, good news is that there are ways around to bouncing back from a bankruptcy. Have the professionals guide you out of this horrible event the right way but also the quickest way. With over three decades of experience, HARRIS S. AMMERMAN, is dedicated to serving anyone who is experiencing overwhelming debt and needs to file for bankruptcy relief under Chapter 7, or chapter 13. We are pleased to serve the Washington D.C., Maryland and Virginia areas, call today at (202) 638-0606 for a free consultation.

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