Once you have made the decision that you want to go bankrupt, chances are you already feel as if a weight has been lifted off your shoulders. What has to be realized though, is that this possible financial solution to your heavy debt load may not wipe out all of your debt entirely, and you could end up having to forfeit some of your assets.
Risks and Benefits of Chapters
Most people feel that chapter 7 is the best bankruptcy route, and are shocked when they discover that they cannot meet the qualifications for it, and have no other option but to do their filing under chapter 13. This may not be a bad thing. To make sure that you are truly filing under the right rulings you would do well to utilize the services of bankruptcy lawyer. No matter which bankruptcy chapter you have to file under, you want to make sure it is done right, and to your full advantage.
Chapter 13 bankruptcy is sometimes called a reorganization bankruptcy. This is because you are going to be paying your debts but they are being reorganized in such a manner that you are able to meet your obligations. It is your money that is going to be put towards your debt, but first the courts have to determine that you are going to be generating enough income to be able to do this. This bankruptcy deals with both secured and unsecured debts, and there are limits for each of these that can be brought into the chapter 13 bankruptcy.
A secured debt is one where your creditor could take a specific asset of yours that you used as collateral to secure your loan. It might be your car or even your house. An unsecured debt is one that you incurred with no collateral such as a credit card or medical expenses. Your College Station bankruptcy lawyer will ensure that you understand the differences between the two bankruptcy chapter, and which is the one that you qualify for.