Ask the Atlanta Bankruptcy Lawyer: Is Filing Chapter 7 or Chapter 13 Better?

If you are in need of an Atlanta bankruptcy lawyer, you may be wondering what type of filing will work best for your situation. There are different types of bankruptcy and the two best known are Chapter 7 and Chapter 13. They work in different ways, and once you make a choice for which kind you are filing, there is little opportunity to halt the process. That is why it is a good idea to have a lawyer working on your behalf with not only your creditors but also the court system. 

Chapter 7 Bankruptcy

If you choose to file a Chapter 7 bankruptcy, you hand over ownership to your non-exempt property to your court-appointed bankruptcy trustee. This person converts those items into cash to pay off your creditors. In many cases, negotiations have occurred that resulted in lessening the balances owed. You can expect a meeting of creditors to occur and about 60 days after that hearing, you get a debt discharge and the opportunity for a restart. 

Chapter 13 Bankruptcy

Unlike a Chapter 7 bankruptcy, there is no court-appointed trustee that wants to sell the debtor’s assets to pay off creditors. Instead, the debtor gets the opportunity to set up payment arrangements with their creditors that they pay off over a three to five year payment plan. At the end of that time, whatever is left gets discharged. 

Do you need a consultation with an Atlanta bankruptcy attorney? Galler Law has both in-office and virtual consultations through Skype and Zoom. For more information about our services, call our team today at (770) 671-8830 or send us an email.