With the help of bankruptcy lawyers, individuals can assess their financial situation and seek bankruptcy option that provides the best possible outcome. For some, Chapter 7 may be your only realistic option. Also known as straight bankruptcy or liquidation, Chapter 7 bankruptcy the debtor can keep some property while non-exempt property is sold with all proceeds going to creditors. In the process, many other debts are discharged, while some remain – such as child support, taxes, legal fees, and many student loans, to name a few. In many cases, lenders have very few assets that are eligible for payment. In these cases, attorneys may suggest Chapter 7 bankruptcy will allow the lender to get back quickly with minimal losses of personal property.

Some lenders have a lot to lose – like a home or a car and you want to avoid losing them. In this case, the bankruptcy attorneys can advise their clients to seek Chapter 13 bankruptcy. Also known as the reorganization chapter 13 bankruptcy allows a creditor to pay part or all of your debts, usually under more favorable terms, as less interest and fees exemption. However, it is more difficult to qualify for Chapter 13 protection because the value must have enough disposable income to qualify. With the help of bankruptcy attorneys, debtors in Chapter 13 arrangements have three to five years to pay off your creditors, while enjoying the protection of the bankruptcy court – the value can not ongoing attempts to collect the debt originated during this time. However, the debtor can not obtain additional debt during this time, so both sides are contained by the court.

For Colorado Bankruptcy Lawyers, please visit our site: http://www.morsebankruptcy.com/