Divis Law, LLC specializes in consumer bankruptcy and offers consultations.
We will respectfully and carefully assist you in determining an appropriate approach. Our firm appreciates the opportunity to help simplify the process of restoring a sense of financial peace and control to our clients.
We welcome your call anytime.
WHAT IS Bankruptcy?
Divis Law recognizes that there are times in which the legal process of bankruptcy, overseen by federal bankruptcy courts, may help individuals to manage all or part of their unsecured debt through elimination or repayment plan. While bankruptcy is designed to provide debt relief, there are long-term credit effects. Divis Law will help equip people to make informed and appropriate decisions for their unique situation, compliant with governing bankruptcy proceedings.
One important decision involves the type of bankruptcy needed–either Chapter 7 or Chapter 13–as they relieve debt in different ways. Note, however, that bankruptcy does not affect certain debts, such as court-ordered alimony and child support, taxes, and student loans.
Chapter 7 Bankruptcy
Chapter 7 “straight” bankruptcy involves allowing the sale of certain assets to liquidate money for paying creditors. The balance of what you owe is eliminated after the bankruptcy is discharged. Those pursuing Chapter 7 must pass a required assessment to demonstrate inability to repay debts.
Chapter 7 bankruptcy may provide the more extensive relief of debt, but the negative effects on credit last longer, and there may be little asset retention.
Chapter 13 Bankruptcy
Chapter 13, on the other hand, enables individuals to keep property in exchange for partial or complete repayment of debt according to a negotiated repayment plan. Upon completion of this reorganization plan, any original debt remaining is discharged.
Chapter 13 may be a more favorable option for some people. While it still negatively impacts credit, the effects cycle off the credit report more quickly and there is usually greater asset retention.