Filing for bankruptcy is never an easy decision to make, and it can be a long process. Fortunately, with the assistance of your local bankruptcy attorney, it does not have to be unpleasant. Finding an attorney for bankruptcy help is the best way to learn what your options are, and which best fits your needs. Two of the most common options are Chapter 7 bankruptcy and Chapter 13 bankruptcy. Here are some Frequently Asked Questions to review before you meet with your attorney.

What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy begins with the bankrupt party filing a petition with a specific bankruptcy court. When filing for Chapter 13 bankruptcy, the petition must be filed with the court that serves the area where the petitioner has a residence. Generally, the petitioner gets to keep their property, after agreeing to a repayment plan. This plan must be filed with the court, and is an agreement to repay a reasonable amount of the petitioner’s debt within a certain period of time.

What is Chapter 7 Bankruptcy?
A Chapter 7 bankruptcy does not involve a repayment plan. Instead, the bills are liquidated, which means that the debtor’s property is sold and the proceeds paid to the creditors.

How much does filing bankruptcy cost me?
Currently, the fee to file for Chapter 7 bankruptcy is $306, however, those fees can be waived in certain situations. Consult your local bankruptcy attorney to find out if this option is available to you.

Do I really need a lawyer?
The short answer is yes! Filing without the assistance of a reputable attorney can result in confusion from the nuances of bankruptcy law, and you may make mistakes that cost more in both time and money. Many attorneys offer payment plans for their services, and are willing to work with their clients to do what is in their best interests.