Which Bankruptcy option is Right for You?

Bankruptcy provides critical financial relief for debt-burdened individuals and businesses. The Bankruptcy Code outlines several types of bankruptcies, each serving different purposes. Understanding the key distinctions can help determine the most suitable option.

The two most common personal bankruptcy chapters are:

  • Chapter 7: Liquidation bankruptcy. Non-exempt assets sold to pay creditors; remaining debts discharged.
  • Chapter 13: Reorganization bankruptcy. Assets retained while repaying debts via 3-5 year court-approved payment plans.

Key Benefits of Chapter 7

Chapter 7 offers swift resolution, typically completing within four months. Essential assets may be exempted from liquidation. However, it requires passing an income eligibility test and can hurt credit scores. Contact Gale Angelo Johnson P.C. to discuss if Chapter 7 bankruptcy aligns with your financial situation. Their legal experts can help you navigate the Chapter 7 filing process.

Key Benefits of Chapter 13

Chapter 13 allows debtors to keep property while catching up on late payments through structured repayment plans. However, it involves long timelines, typically 3-5 years to repay debts in full.

If retaining assets is crucial but debts feel crushing, consult our bankruptcy attorneys about Chapter 13 eligibility. They can advocate for court-approved plans manageable for your budget.

Seeking Specialized Legal Guidance

Given the complexity of bankruptcy law, partnering with knowledgeable bankruptcy attorneys is strongly advised when filing. They can:

  • Evaluate personal financial situations
  • Explain the pros and cons of each chapter
  • Facilitate smooth filings and court proceedings
  • Offer ongoing support throughout the process

Contact Gale Angelo Johnson P.C. to schedule a consultation with our bankruptcy attorneys today. Their insight can help determine the ideal path forward for your financial fresh start.

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