While some may hear about Chapter 7 bankruptcy and Chapter 13 bankruptcy on TV or the radio, defining both bankruptcy options may be an entirely different subject. Our Plano TX attorneys want you to understand the difference between the two options and, if bankruptcy is the route you must take, choose your option wisely.
Chapter 7 bankruptcy, also known as straight bankruptcy, gives a debtor a fresh start by granting a discharge in exchange for the sale all non-exempt asses owned. The funds from those assets are distributed within a debtor’s creditors.
Chapter 13 bankruptcy requires debtors to put together and follow a debt repayment proposal for all creditors over a period of three to five years. A debtor is allowed to retain all assets in this case. A debtor is required to make monthly payments to a bankruptcy trustee during those three to five years, and the trustee distributes payments to the creditors.
If bankruptcy is an option you must take, our bankruptcy law experts are more than willing to answer all of your questions. They can further explain the differences in the two bankruptcy options and will offer proper and thorough advice regarding which option suits you best. Call our Plano attorneys today, or contact us online for more information.