What Debtors Should Understand About Chapter 7 and 13 Bankruptcy in Marietta, GA

by | Sep 25, 2017 | Lawyers

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Responsible borrowing can help a person or family more easily achieve any of a wide range of possible goals. From obtaining a reliable car for traveling to work to buying a first home, borrowing is a powerful tool that can easily be used to enable positive results.

On the other hand, quite a few borrowers in the area every year find themselves sinking under the weight of their obligations. When debts become far too large to keep up with, considering a chapter 7/13 bankruptcy in Marietta, GA can be a productive option.

Two Different Types of Bankruptcy Available to Most Individuals

Just as corporations have their own assigned types of bankruptcy relief, so are individual borrowers normally eligible for at least one of two variations. Each of these carries particular obligations and advantages, so understanding the difference is always important. In particular, individual borrowers can typically choose between:

* Chapter 7 bankruptcy. Under this form of the legal maneuver, all debts will typically be wiped out. While loans taken out to finance an education or that were obtained under fraudulent circumstances will often remain in force, others will normally be zeroed out by the courts. In exchange, debtors will typically be forced to submit to a fairly thorough liquidation of their possessions, with only a few particular assets being sheltered. Because chapter 7 allows for a truly fresh start, at least in certain respects, it often turns out to be the tool of choice for those whose debts have become least manageable.

* Chapter 13 bankruptcy. Under the chapter 13 variation on the process, the court will instead develop a repayment plan for debts that are eligible. The bankruptcy court will consult with a debtor’s creditors to arrive at suitable terms, but without subjecting many personal assets to liquidation. As a result, this can be a more attractive choice for those who will need to retain certain possessions in order to continue making a living.

Moving Forward with a Significant Burden Removed

Considering a chapter 7/13 bankruptcy in Marietta, GA can therefore be an excellent option for debtors of various situations. As a visit to a website like websitewill show, there are plenty of professionals who are ready to provide advice and support.

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