Dealing with bankruptcy can get difficult if you do not have a proper bankruptcy lawyer to fight out your case. However, getting a lawyer does involve charges, and you can always choose to file your case without hiring a bankruptcy lawyer huntsville. If you think bankruptcy can only happen in business, then you are wrong. Bankruptcy can happen to individuals personally as well. This article will talk about the two kinds of bankruptcy faced by individuals. Bankruptcy is divided into chapters. Here we will talk about the two chapters that include personal bankruptcy.
Chapter 7 of Personal Bankruptcy
To begin with, is Chapter 7. This is the kind of bankruptcy that liquidates your assets to pay to the creditors. However, this chapter includes some assets that you can keep even when your assets get liquidated to pay back your creditors. These assets include; home equities, automobile, clothing, personal items, tools that you require for working, social security, pensions, and other public benefits. These do not liquidate. You can keep them. Apart from these, the other things that are not exempted are sold off by the trustee sent by the bankruptcy court. Non-exempted assets might include your property, boats, recreational vehicles, trucks, a second car, investment accounts, bank accounts, collectibles, and other valuable items. After the process ends, all your debts will be discharged, and you will no longer be liable for any payment to any of the creditors.
Chapter 13 of Personal Bankruptcy
Chapter 13 in bankruptcy allows you to keep your assets. However, you will have to agree to pay off all your debts within a specific period. Approximately three to five years. The trustee sent by the bankruptcy court will collect the payment from you and will distribute it among your creditors. People who want to keep their non-exempt property and other things intact often choose Chapter 13. However, hiring a bankruptcy lawyer huntsville is advisable in this case.