When you meet a bankruptcy lawyer, you will learn that you can file the bankruptcy under two sections. Chapter 7 or Chapter 13, is the available option. But as you are not familiar with the two sections, you need to understand the options first. Chapter 7 is basically a liquidation bankruptcy. It will help you in wiping out all the unsecured debts like the medical bills and credit card bills without further need of repaying the balance after a certain period. There is a particular set of income requirements that you have to fulfill if you want to qualify for the Chapter 7 filing procedure.
Chapter 13 bankruptcy
The huntsville bankruptcy lawyer will suggest filing under Chapter 13 when you have to avail of reorganization bankruptcy. This will work best when you have a stable income per month. The excess amount you can save each month will help repay the loans or at least portions of the loans through a monthly scheme. You may choose this section as there will be many benefits that you cannot get if you file under Chapter 7. If the stay order of the Chapter 7 filing is not so important top you, then the advocate will definitely ask you to go for Chapter 13.
More benefits with Chapter 13
You can keep all your possessions and assets when you file under Chapter 13. Even the nonexempt assets will also be under your possession. But you can do so only when you can pay the creditors an amount that equals the value of the nonexempt assets. You will receive a repayment plan that will help in maintaining your property and preventing loss of assets. The income and expense schedule per month will be the factors of consideration when the judge will decide the amount of payback per month.