What Type of Bankruptcy Should You Consider?

There are several types of bankruptcy. But let’s talk only about the three (3) types which you should know about.

Chapter 7. The first type you should know about is Chapter 7 also known as “straight” bankruptcy. Chapter 7 usually allows most of our clients to keep their property and not give it up to creditors. However, careful planning is the key to making sure you keep your home, your IRA, your 401K your jewelry, your car and other property. WARNING! A good consumer lawyer in most cases can file a Chapter 7 where NO PROPERTY is given up!

Chapter 13 is sometimes called “debt adjustment” or “consolidation.” In Chapter 13, you file a plan to pay debts (or a part of debts) from your current income. Chapter 13 can be very effective lowering or eliminating interest rates. It also can be useful in forcing the creditor into a more convenient payment plan.

Chapter 20. “Chapter 20” is a combination of Chapter 7 and 13. In rare circumstances, O.W.D Law will use this for our clients where both a Chapter 7 and a Chapter 13 could benefit them.