What Is Life Like During a Bankruptcy Case?
Filing for bankruptcy is a big event that requires serious thought and consideration. It also requires some work, as you must file a lot of documents for your case. If you decide to use bankruptcy, you might wonder what to expect during your case. What is life going to be like during it? It is important to know these things before you file, as knowing what life is like during your case will help you prepare for it and manage it. Here are several things to know about this if you are preparing to file.
Chapter 7 Is Faster and Easier
The first thing to understand is that you can use different branches of bankruptcy for debt relief. If you end up using Chapter 7, your case will be faster and easier. Chapter 7 bankruptcy does not require a repayment plan, and it provides a discharge of debts relatively quickly. In many cases, people can file a Chapter 7 case and complete it within six months or so. During a Chapter 7 case, you might have to submit a few documents to your attorney, but that is about all you must do. You will not make payments to the court, and you will not have to notify the court about changes in your life.
Chapter 13 Requires More Work
The other branch you can file is Chapter 13. People file this when they do not qualify for Chapter 7 or when they need a different type of debt relief. When you use Chapter 13, you will be involved in your case for up to five years. The repayment plan used in Chapter 13 cases often takes five years for a person to complete. During these five years, you will make payments to a bankruptcy court. They will use these payments to repay your debt according to a plan that your lawyer creates with the court's help.
While you are involved in your Chapter 13 case, you will also be required to notify the court of changes. For example, if you receive a pay increase, you must tell the court. If you receive an inheritance, you must also tell the court. Any changes that occur to your finances during your plan might affect your repayment plan.
If you have questions about bankruptcy, talk to services like Martinez Law Firm. A lawyer can answer your questions and offer advice about which branch you should consider filing.