There are many reasons why people become burdened by debts, including uncontrollable life circumstances like job loss and divorce. For people that feel overwhelmed by their debt, there is hope in obtaining some relief through bankruptcy. In fact, for people struggling to pay their bills, bankruptcy can help them get their finances back on track.
For people that are considering bankruptcy as an option, there are two approaches to filing for consumer bankruptcy, Chapter 7 and Chapter 13. Understanding both options can help an individual assess which path to bankruptcy would be best for him or her.
What Should I File?
Deciding which type of bankruptcy to file presents difficulties to many individuals. That’s where hiring a bankruptcy attorney can help. To get the best assessment of what a filer should do, he or she should consider an experienced, successful bankruptcy attorney to achieve the best results.
Charles E. Covey has over 30 years of experience assisting clients with bankruptcy filings. Charles Covey is well-renowned for helping his clients overcome their debt difficulties with both Chapter 7 and Chapter 13 bankruptcy solutions. Plus, Charles E. Covey not only understands the complicated process of bankruptcy, but he also approaches his clients with patience and compassion. He is willing to address all of the client’s questions and concerns while guiding filers through the bankruptcy process.
Chapter 7 Bankruptcy: Fewer Assets
For individuals that need a fast escape from debt, Chapter 7 offers several significant benefits. When a person claims chapter 7 bankruptcy, most of the debts that person owes discharge immediately. However, there is a drawback to Chapter 7 Bankruptcy. In Chapter 7 bankruptcy, liquidation can occur. That means items a filer owns can be sold to repay some of the debt before a discharge of debt occurs. For people that do not own many valuable assets, using a Chapter 7 filing offers the best approach to bankruptcy. For individuals that need help with Chapter 7 bankruptcy, Peoria bankruptcy attorney Charles Covey can help.
Chapter 13 Bankruptcy: More Assets
For individuals that do own several valuable assets, Chapter 13 bankruptcy is probably the better option. Chapter 13 bankruptcy does not require a filer to perform liquidation. However, Chapter 13 filings take more time than Chapter 7 filings. So, if somebody needs a faster bankruptcy filing process, Chapter 7 might not be for them.
Charles E. Covey can assist a filer with developing a repayment plan. After that, the court will review the repayment plan and consider a three year or five-year term. The filer’s debts consolidate once he or she is under a repayment plan, making the payments owed decrease. As long as the registrant repays according to the court-approved plan, the debts will discharge once the three to five-year repayment term ends.
Contact Person: Charles Covey, Attorney at Law
Email: Send Email
Address:Commerce Bank Building 416 Main Street, Suite 700
State: Illinois 61602
Country: United States