Having a Clear Understanding of What Bankruptcy Des Moines Means

January, 2014 by Alma Abell

One of the most important things that a bankruptcy attorney brings to the table is explaining what exactly Bankruptcy Des Moines is. Most people understand that filing bankruptcy is about eliminating some of your debt. However, they are unaware of the fact that there are limitations and consequences associated with filing as well. Some people are surprised to learn that they might be better off pursuing a debt settlement than filing bankruptcy depending on their financial situation.

Deciding What Kind of Bankruptcy To File

For a lot of people, it is very shocking to learn that they have to decide what kind of Bankruptcy Des Moines to file. Isn’t bankruptcy just bankruptcy? Unfortunately, you have to decide whether you want to file Chapter 7 or Chapter 13. One

Chapter 7 Bankruptcy

Chapter 7 is also referred to as liquidation or straight Bankruptcy Des Moines. Chapter 7 is reserved for individuals who are buried under an unreasonable amount of debt. Any way you slice the debt it is not physically possible for someone to pay it off in three to five years. A lot of people consider Chapter 7 to be the better option because it wipes the slate clean. The only downside to Chapter 7 is the fact that some of your assets will be seized and liquidated in order to pay the creditors the money you owe them.

Chapter 13 Bankruptcy

A lot of people consider Chapter 13 to be more responsible option. This is because Chapter 13 is about committing to a repayment plan and paying off all of your debts in the next three to five years. Chapter 13 is the option for people who still want to file even though they do not qualify for Chapter 7.

When you consult with a bankruptcy lawyer they are going to help you figure out whether or not Bankruptcy Des Moines is the answer to your problems. They are going to help you figure out what kind you should file; and then they are going to help you do all of the paperwork. Hiring a lawyer for the paperwork alone is enough of a good reason because one little mistake could end up costing you really big when it comes to filing.