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The Difference Between Bankruptcy Chapter 7 And 13

dreamstime_8144652Money makes the world go ‘round, at least that’s what you’re taught as you go through school, higher education, and finally set out to get a begin a job. If you want to live a nice life, you have to make a decent amount of money to achieve the necessities such as shelter, food, and clothing. However, what about all of the other things that cost money? For instance, if you received a college degree you need to pay back your loans. If you want to go on vacation, you need to pay for it and transportation also costs money. Whatever way you look at it and despite the many times people tell you that money can’t buy happiness, it can at least buy you comfort. Which is why it’s important not to overspend your money and budget accordingly, or else you’ll find yourself declaring bankruptcy.

At Ores Law, if you are facing bankruptcy in Colorado and need to know the law, we can assist you. Ores Law is a law firm that excels at helping clients with Colorado law and bankruptcy. We are able to guide you toward the next steps when you find yourself nearing bankruptcy.

Two Types of Bankruptcy

There are two types of bankruptcy, and depending on your situation, you will fall into either category. Each type of bankruptcy means something different, which it’s why you should recruit someone who is familiar with bankruptcy law to assist you. Knowing the difference between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy  is vital to allow you to properly declare bankruptcy. Bankruptcy is already a very distressing situation to go through, but with the help of a lawyer, it can be made easier. If you are going through bankruptcy, contact a lawyer today.

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is the liquidation of assets, so debts and creditors are able to be paid back. It is not repayment and is known as straight or liquidation bankruptcy. This bankruptcy is geared toward property, so it can be sold to creditors. Usually, when a person is facing Chapter 7 Bankruptcy they are able to keep more of their belongings, except their property because property tends to be the most valuable and available for collateral. Property can include a car, house, or land. The people who are able to file Chapter 7 Bankruptcy are: individuals, corporations, and partnerships. Read more about Chapter 7 Bankruptcy and how we can help you overcome this difficult time in your life.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a longer type of bankruptcy. This type of bankruptcy is neat because you are able to come up with a plan to overcome your bankruptcy. Chapter 13 Bankruptcy caters to re-organization, which means that a person pays their debts over a period of years. You are able to make a plan to pay off all of the credit and debt you may owe over about a five year period. Unlike Chapter 7 Bankruptcy, you are able to keep your property, which would’ve been used as collateral. When you file a plan with Chapter 13 Bankruptcy you are also able to keep your assets but must begin to concentrate on paying back the debt and credit you’ve accumulated. The people eligible for Chapter 13 Bankruptcy are people who are in debt who have a steady income. Read more about Chapter 13 Bankruptcy and learn how it might be the fit for you.

Are you facing problems with bankruptcy or need help from a Colorado lawyer? Our law firm is located in Loveland, CO, and we cater to all the surrounding areas. Ores Law can help, contact us today.