Understand The Concept Of Chapter 13 And Chapter 7 In Debt Settlement

Understand The Concept Of Chapter 13 And Chapter 7 In Debt Settlement

Many a time it happens that people neglect seeking an attorney for their debt related problems. For instance, you bought a car that has been beckoning you since a few months and were paying the installments smoothly. However, all of a sudden, your company went to a loss and you can no longer pay the bills. In this condition, when you are fail to pay the amount, your lender has the right to repossess your vehicle. These situations can be exhausting leaving no alternatives to tackle the issue. However, when you live in the US, there are laws that make it easy for you to manage debt related problems. Chapter 7 and Chapter 13 are the major laws related to bankruptcy in the US. The difference between both chapters can be explained with their domain of service. For instance, Chapter 7 is used for liquidation related issues and Chapter 13 is used for bankruptcy related issues. On one hand, only individuals including sole proprietors can file Chapter 13 whereas Chapter 7 can be filed both by individuals and business entities.

If you have already filed for bankruptcy, but it got rejected due to unsolicited reasons. For many attorneys, it can be a state of dilemma that whether they can file a Chapter 13 after Chapter 7. However, for the most part, you can file a Chapter 13 at any time even if it is the day after a discharge from a Chapter 7. The benefit of filing Chapter 7 is that here, debtors can discharge a good amount of debts to rejoice a fresh start. Chapter 13 allows debtors to keep their property and catch up on any nondischargeable priority debt payments. There are various attorneys who can be accessed online within a time of a few clicks. Acclaim Legal Services is one company that have been offering its key help in various debt settlement issues. Chapter 13 is a much wider aspect of bankruptcy law and is quite beneficial in stopping the repossession of a car or any other vehicle. Hence, it can be concluded that sound knowledge of laws governing your state is quite vital. Sometimes a case for debt settlement can be dismissed due to ironically missed payments, failure to attend a court proceedings or failure to file or provide documentation. In such situations, it is advised to hire an attorney who has experience in handling such situations.

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