What is Bankruptcy, and How Does it Work?
Bankruptcy allows individuals struggling with debt to achieve a financial fresh start. Whether it's Chapter 7 or Chapter 13 bankruptcy, each option helps individuals resolve unmanageable debt, protect essential assets, and restore their finances. By working with a Lincoln County bankruptcy attorney, you can determine which chapter best suits your situation.
Types of Bankruptcy: Chapter 7 and Chapter 13
The two most common bankruptcy types are Chapter 7 and Chapter 13:
- Chapter 7 Bankruptcy: Known for its efficiency, Chapter 7 bankruptcy liquidates non-exempt assets to repay creditors. Afterward, eligible debts may be discharged, providing relief and a fresh start.
- Chapter 13 Bankruptcy: This option involves a structured repayment plan over three to five years, allowing individuals to retain assets while gradually paying down their debt.
A Lincoln County bankruptcy lawyer can guide you through choosing between Chapter 7 or Chapter 13 bankruptcy.
