Chapter 7 and Chapter 13 are the two most common types of bankruptcy cases referred to by their chapter number in the Bankruptcy Code. Whichever bankruptcy case a person decides to file, it’s important to get legal counsel and representation from a competent Bankruptcy Lawyer Greenbelt.
Chapter 7 bankruptcy is also known as a liquidating bankruptcy. It is filed for an individual to liquidate their assets and settle for the discharge of debts. The bankruptcy court trustee supervises the sale of the assets and gives the money from the sale to the creditors. Once the sale is complete, the court enters an order discharging all of the debtor’s dischargeable debts that are not covered by the money from the sale of assets.
Chapter 13 bankruptcy allows the debtor to get organized and pay off certain debts over three to five years. In turn, the debtor keeps all their valuable property like a house or a car. When debtors files for this type of bankruptcy, they make a bankruptcy plan for how they will pay the debts with the guidance of a Bankruptcy Attorney Greenbelt. The plan will call for a monthly payment to the trustee, who will then use these payments to pay the creditors. After completion of payments under the plan, the debtors receive a discharge of most debts.
Anyone considering bankruptcy should know that bankruptcy law has a lot of complexity. So it’s best to seek professional assistance from a Bankruptcy Lawyer in Greenbelt.
About The Phillips Law Offices
The Phillips Law Offices is a leading bankruptcy law firm in Greenbelt, MD. The attorneys at the law firm have extensive experience and expertise in handling any bankruptcy case.
Company Name: The Phillips Law Offices
Contact Person: Jill Phillips, Esquire
Email: Send Email
Phone: (301) 494-4250
Address:6301 Ivy Ln #700-A
Country: United States