When an individual or a family get into deep financial trouble, bankruptcy usually surfaces to the horizon as the last option. The types of bankruptcies that are normally filed by individuals are Chapter 7 and Chapter 13. The first type of bankruptcy is when the individual does a complete erasure of all qualified unsecured debt. The second type of bankruptcy is another term for a reorganization of the person’s debt so that what the court deems can be paid off in about three years.
What to Expect in a Chapter 7 Bankruptcy
Not every person or every situation can qualify for a Chapter 7 bankruptcy, as there must be an income requirement to file this type. In this type of bankruptcy, the debtor cannot keep the house, and usually has to liquidate most of the other possessions in order to satisfy the requirements for Chapter 7. The good thing about this bankruptcy is that it allows a fresh start for someone who otherwise has no other option. This is especially good for those who may have lost their jobs and have no other income coming in.
What to Expect in a Chapter 13 Bankruptcy
In a Chapter 13 bankruptcy, a professional such as a bankruptcy Lawyer in Lawrence KS will help the debtor reorganize debts so that they can be paid off to satisfy the requirements of the court. In this type of bankruptcy, the debtor can keep the home and the car, but payments must be made current. Chapter 13 will also allow for the debtor to pay taxes and child support. The debtor also has the option to pay less upfront fees to the attorney.
A Bankruptcy Attorney Who Can Help in Lawrence, Kansas
Joseph I. Wittman Attorney at Law is one of the several law firms in the Lawrence, Kansas area who can provide debt relief solutions to clients. In addition to handling individual clients, the law firm also represents clients that are small business owners. If there are any individuals or small businesses who are looking for a bankruptcy Lawyer in Lawrence KS, they can visit the website of the law firm for more information.
