What is Bankruptcy?
Bankruptcy is a legal process that helps people deal with debts they can’t pay. Bankruptcy strives to strike a balance between what a person is able to pay, and what a creditor is owed. People often talk about bankruptcy in terms of “chapters,” which refer to different sections of the federal bankruptcy law. Usually, a person will file for either “Chapter 7” or “Chapter 13” bankruptcy.
Filing for a Chapter 7 bankruptcy means a person surrenders certain property in exchange for debt forgiveness. Generally, the bankruptcy rules allow a person to keep basic necessities – including a house, a car, and household goods.Depending on your circumstances, Chapter 7 bankruptcy can wipe away debts, silence creditors, and allow for a fresh, debt-free start.
Not everyone is able to file under Chapter 7. A person must be at specific income levels, or otherwise qualify. Consulting a bankruptcy lawyer can help you determine whether Chapter 7 is right for you. Contact Wild Sky Law Group at (425) 646-2773 to schedule a consultation.
Unlike Chapter 7, Chapter 13 does not forgive a person’s debts. Instead, debts are consolidated and a monthly payment plan is created. This payment plan allows a person to pay off their debts in 3 to 5 years while keeping ownership of all of their possessions. When filed correctly, Chapter 13 bankruptcy can silence creditors and provide a clear path to move on with your life.
A person must meet certain requirements to qualify for a Chapter 13 repayment plan. A bankruptcy attorney can help determine whether a Chapter 13 bankruptcy is right for you. Contact Wild Sky Law Group at (425) 646-2773 to schedule a consultation.
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