If you’ve exhausted all of your debt relief options, you may have decided that bankruptcy is the most viable solution. However, navigating the complexities of bankruptcy can be overwhelming, as each chapter carries its own unique set of considerations and implications. Please continue reading as we explore the various bankruptcy chapters available to consumers and how our knowledgeable Gillette Bankruptcy Lawyers can he;p you make an informed decision that aligns with your needs.
What Are the Different Kinds of Bankruptcy for Consumers?
Choosing the right chapter is imperative, as it will determine which debts are eligible for discharge, what assets you may be able to keep, and what obligations you must fulfill. As a consumer, there are generally two forms of bankruptcy you can pursue.
First, you may choose to file for bankruptcy under Chapter 7. Those with significant debt may file under this chapter to have their non-exempt assets liquidated by a court-appointed trustee, with the proceeds used to pay off creditors. Once all eligible debts have been sold off and creditors have been paid, the remainder of your qualified debts will be discharged. This is usually used when an individual cannot afford to repay their debts regularly. However, to file for Chapter 7 bankruptcy, you must pass a “means” test. This means your debts are lower than the average income of your household size in Wyoming to proceed.
Another option for consumers who wish to file for bankruptcy is to pursue a Chapter 13 filing. This chapter is also known as a “wage-earners plan,” as it allows those with regular income to reorganize their debts. This is achieved through a court-approved repayment plan, which enables them to pay back a portion or all of their debts over a set period, usually lasting three to five years. This option allows debtors to keep their property and assets. It’s designed for those with a steady income who want to avoid liquidation of their assets as in Chapter 7.
What Factors Influence Which Bankruptcy Chapter I Should File in Wyoming?
When considering which form of bankruptcy to pursue, it’s important to consider several factors. Generally, you should consider your income level first. If your income is too high, you will not be eligible to file for Chapter 7 and will need to pursue Chapter 13 instead.
It’s also important to consider the value of your assets. Filing for Chapter 13 can help safeguard high-value, non-exempt assets. Under Chapter 7, these assets would be seized and liquidated to repay creditors. Finally, the type of debt you have should be considered. Chapter 7 may be a faster option for unsecured debts, such as credit cards or medical bills. However, if you have secured debts and want to keep the asset, such as your home or vehicle, Chapter 13 may be a better option.
Bankruptcy is a legal process with significant consequences. By understanding your options and seeking professional guidance, you can take control of your financial situation. At 307 Bankruptcy, we are prepared to help you navigate the legal complexities of bankruptcy and ensure that your rights are protected throughout the process. Connect with our firm today for advice and skilled representation.
