The two most common types of bankruptcy are Chapter 7 and Chapter 13. These are different in a number of ways and one may be more beneficial to each different type of debtor than the other kind, as they each have particular advantages. By talking to a qualified Chicago bankruptcy attorney about your particular financial situation, you have the opportunity to find out more about which type of bankruptcy you might qualify for, as well as which type could be more beneficial to your unique circumstances. At Joseph P. Doyle, we offer a free bankruptcy evaluation to help you get started.
While the best way to determine whether you qualify under Chapter 7 or Chapter 13 and decide which option is best for you is to talk directly to our Chicago bankruptcy lawyer, we provide some basic information for your convenience.
Chapter 7 can be referred to as "liquidation" and entails a debtor surrendering nonexempt assets to the bankruptcy trustee. These assets are then sold and the proceeds are used to pay creditors. A Chapter 13 case can be referred to as a "reorganization" or "wage earners plan." In these cases, the debtor works out a payment plan to pay a portion of eligible debts over a period of three to five years. Either way, you can discharge all eligible debt at the conclusion of the case.