Chapter 7 and Chapter 13 Bankruptcy in Upstate New York
St. Lawrence County ∙ Jefferson County ∙ Franklin County
If you are struggling with unmanageable debt, you should know that you are not alone. Financial troubles can strike any individual or family, regardless of income level. Unexpected medical bills, layoffs, a divorce — these and other life events can result in major financial trouble that can seem impossible to handle.
For some people in difficult financial situations, bankruptcy may be the best option to get relief from the pressure of unmanageable debt. At the law firm of Carlisle Carrothers & Clough, our experienced attorneys have decades of experience helping people file bankruptcy petitions. In a free initial consultation, our lawyers will help you analyze your financial circumstances and decide whether bankruptcy is right for you. Contact us today to schedule an appointment.
Chapter 7 Versus Chapter 13 Bankruptcy
There are two main types of bankruptcy petitions available to individuals. Which type of bankruptcy is best for you depends on several factors, including your current income and level of debt. Your attorney will walk you through a detailed financial analysis to show you which type of bankruptcy is best for your circumstances.
In summary, here are the differences between Chapter 7 and Chapter 13 bankruptcy:
· Chapter 7 bankruptcy: Chapter 7 is not available to everyone. To qualify for Chapter 7 bankruptcy, you must meet an income level test. If your income — relative to your debt — is low enough, then you can file a Chapter 7 bankruptcy petition, which will wipe out all your unsecured debt (credit cards and medical bills).
If you have a mortgage you are behind on and do not anticipate being able to get current — Chapter 7 may allow you to walk away from the house and the mortgage.
· Chapter 13 bankruptcy: Often called a "wage-earner bankruptcy plan," Chapter 13 bankruptcy is often available to people who do not qualify for Chapter 7 bankruptcy. Under Chapter 13 bankruptcy, you enter into a court-approved and court-supervised repayment plan with your creditors. The repayment plan covers five years and is based on your ability to pay. Debt that remains after the five-year period ends may be erased or you may still be responsible for it — depending on the type of debt.
If you are behind on your mortgage payments and want to save your home from foreclosure, a Chapter 13 bankruptcy petition may help you keep your mortgage and your home.
Personal Bankruptcy Filings: Free Consultations
If you are considering bankruptcy as a solution to your financial problems, get legal advice from experienced bankruptcy lawyers who can help you decide on a plan of action that will best fit your financial circumstances and goals.
Contact the upstate New York law firm of Carlisle Carrothers & Clough for a free and confidential initial consultation. Call toll free to 877-636-0471 or send us an e-mail for a prompt response.
