One of the many things Franklin bankruptcy attorneys can help you with is deciding what kind of bankruptcy you should be filing for. Franklin bankruptcy attorneys know about all the many types of bankruptcy, including chapter 11 bankruptcy, chapter 12 bankruptcy, chapter 7 personal bankruptcy, and chapter 13 personal bankruptcy. Given that you are an individual and filing for personal bankruptcy, Franklin bankruptcy attorneys would suggest that you don’t bother with chapter 11 bankruptcy and chapter 12 bankruptcy, which concern farmers and businesses for the most part.
You need only to concern yourself with chapter 7 personal bankruptcy and chapter 13 personal bankruptcy. Both are bankruptcy for individuals, and have their advantages and disadvantages. You should go over both types of bankruptcy and decide which suits your bankruptcy case better.
Sometimes called straight bankruptcy or liquidation, chapter 7 personal bankruptcy involves the bankruptcy court appointing a trustee to help you liquidate your nonexempt personal property in order to help pay back your creditors. This is the quickest form of bankruptcy and you generally receive a bankruptcy discharge within months. However, a chapter 7 personal bankruptcy also stays on your credit report for 10 years.
You become eligible for chapter 7 personal bankruptcy by taking a means test. This means test determines how much disposable income you have. If your average monthly income is lower than or equal to the average monthly income of the state in which you are filing then you are eligible. If it is more, then you are ineligible.
If you are ineligible for chapter 7 personal bankruptcy, chapter 13 personal bankruptcy remains an option. Chapter 13 personal bankruptcy reorganizes your debts into a three to five year repayment plan. While it takes years for you to receive a chapter 13 personal bankruptcy discharge, you can keep most of your nonexempt property. Chapter 13 stays on your bankruptcy report for only 7 years.
For experienced, knowledgeable and trustworthy bankruptcy assistance, contact the attorneys from www.legalhelpers.com. Call toll-free 800-260-1402 today for your initial free consultation or come into one of their 100 offices across the country.