Did you know that there are actually two different kinds of bankruptcies that you can file for? One of the biggest reasons why someone hires a lawyer to help them file bankruptcy is just to make sure they file for the right one. In addition to filling out all the paperwork correctly just figuring out whether you should be filing Chapter 7 or Chapter 13 can be a real chore.
Chapter 7 Bankruptcy
When you file chapter 7 bankruptcy in Wichita, KS you might be told you are filing for straight or liquidation bankruptcy. This is because this is the bankruptcy that is going to wipe your slate clean. With the exception of secured debt, all of your debt is going to be cleared and wiped away. It is important to note that the court may liquidate some of your assets in order to get the creditors some of the money that you owe them.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy tends to be a second choice for most people. You file Chapter 13 when you find out that Chapter 7 Bankruptcy in Wichita, KS is not an option because the court feels that you should be able to pay off your debts based on the money you may. Chapter 13 bankruptcy is going to put you on a payment plan for the next three to five years. During that time you will be required to pay a set amount every month which will be distributed to everyone you owe money to until it is all paid off.
Other than making too much money the only other reason why you would not be able to file Chapter 7 Bankruptcy in Wichita, KS is because you have already filed bankruptcy in the last six to eight years. Bankruptcy is a reset button that the government really only wants you to have to press one time if absolutely necessary. However, you are only allowed to press it once every decade.
