Q: I recently lost my job, and my wife has been out of work for almost a year. I believe I may need to file for bankruptcy , but I am worried about losing my home and vehicles. Is it possible to file for bankruptcy and keep both?
A: Great question-these are common questions for people that are considering filing bankruptcy. There are two different types of consumer bankruptcies-a Chapter 7 and a Chapter 13.
In a Chapter 13 bankruptcy, you will organize a plan to repay some of your debts. You and your creditors will agree to a “financial reorganization,” which is supervised by a bankruptcy court. A Chapter 7 bankruptcy , on the other hand, is when an individual liquidates non-exempt assets to repay creditors. A Chapter 13 will allow you to keep your car and house, although both types will stop a foreclosure.
A Chapter 13 bankruptcy can protect your house and car, but you need steady income. A Chapter 7 will wipe out your debt, but you may need to surrender you house, your car or both.
Bankruptcies are different for each individual and family, seeing as how everyone has different circumstances and financial obligation. Please contact our firm for a free consultation if you are struggling with debt.
Benjamin Brand Services- Chicago bankruptcy lawyer .