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What are the basics of Chapter 13 and Chapter 7?

Are you a resident of New Jersey with too much debt and no way to bail yourself out? William H. Oliver Jr., & Associates, can provide you with a basic rundown of Chapter 13 and Chapter 7 bankruptcy options. One of them may be exactly what you need.

Chapter 13 bankruptcy is based around the notion of having a stable enough source of income to make and stick to a repayment plan. This plan will be decided together with those you owe, as well as your bank. Over a period of time, you will pay off the debts owed on your own. It can take a long time and may not be feasible for those without stable income, but can help you avoid the major problems of Chapter 7.

Chapter 7 bankruptcy, on the other hand, is considered the “simplest and fastest” type. It’s also known as liquidation bankruptcy because you liquidate high value items in order to pay off debts, such as cars, additional homes or property, or other valuables. Though this option is faster than Chapter 13, many people also don’t feel comfortable liquidating their possessions. This can be especially tricky since you have no say over the items that are being sold off, unless they are heirlooms or other items along those lines.

Regardless of what your unique financial situation demands of you, filing for bankruptcy may help you out. To learn more about the options available to you and what you may be eligible for, consider taking a look at our webpage, linked above. You can contact our attorneys for more information, too.

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