bankruptcy document

Financial hardships can come out of nowhere. Divorce, medical emergencies, and other life events can conspire to put people into challenging situations. When someone is experiencing dire financial circumstances, bankruptcy might be the only way out. Nobody sets out in life to end up filing for bankruptcy, and doing so doesn’t represent any kind of moral failing. Bad things happen to good people all the time. Bankruptcy is simply a legal instrument to allow someone some breathing room to rebuild their financial status. Let’s take a closer look at some critical information you should know.

What is the Difference Between Chapter 13 and Chapter 7 Bankruptcy?

People can have different kinds of debt, which means there are different kinds of bankruptcy rules to follow. In short, Chapter 13 bankruptcy is for those facing foreclosure on their home or having their wages garnished. Chapter 7 bankruptcy, on the other hand, is for people who have fallen behind on credit card debt, medical bills or car loans.

When to File for Chapter 7 Bankruptcy

stressed couple

People accumulate debt for several reasons, including credit cards, financing a car purchase, or taking out personal loans. Everything will be fine if you can keep up with the payments on these things. However, if you get sick or lose a job, this situation can quickly spiral out of control — leaving bankruptcy as the only way to get your head back above water. 

Filing for Chapter 7 bankruptcy will put a stop to ongoing collection actions, as well as having your paychecks garnished. Additionally, filing for Chapter 7 can protect assets like a home or car from being taken to satisfy debts.

Not everyone can qualify for Chapter 7. Working with an experienced bankruptcy attorney from the Law Firm of Seymour & Associates will help you understand your available options.

What Does Chapter 13 Bankruptcy Mean?

You work hard for every dollar you take home. However, if you seem never to be able to get ahead on bills, Chapter 13 bankruptcy protections could be the financial exit ramp you’re looking to use. There are several financial benefits when filing for Chapter 13 bankruptcy. Using this available legal instrument can:

  • Stop home foreclosures
  • Vehicle repossessions
  • Wage garnishments
  • Tax levies
  • Reinstate suspended driver’s license

Is an Augusta, GA Chapter 13 Bankruptcy Lawyer Worth it?

Indeed, no rule says someone filing for bankruptcy needs to hire an attorney. However, one of our expert bankruptcy lawyers can help clients take full advantage of Chapter 13 protections, including:

  • Getting an approved payment plan through the bankruptcy courts
  • Immediately have a judge’s order stop additional debt collection activities
  • Help you protect assets and begin the process of financial recovery from the bankruptcy process

Ultimately, any bankruptcy attorney from our firm has one goal: to obtain the best possible financial outcome for all of our clients. If you’re struggling with debt and you need help taking the complex steps that come with working through bankruptcy, schedule a consultation with one of our compassionate and experienced attorneys today.