How Do You Know Which Type of Personal Bankruptcy is Right for You?

by | Sep 16, 2019 | Injury Lawyer

You’ve tried everything within your power to get control of your debt, but nothing works. Now it’s time to talk with one of the bankruptcy lawyers in Rockford, IL, and see if you’re eligible for bankruptcy protection. Along the way, you’ll learn about the two options for personal bankruptcy and which one is best for you. Here are some of the ways you and your lawyer can make the right choice.

Understanding the Difference Between Priority and Non-Priority Debts

Your individual debts will be classed as either priority or non-priority. Priority debts include obligations like taxes, child support payments, student loans, and several other kinds of unsecured debt. Non-priority debts would include obligations like credit card balances and some types of loans. While there is a narrow range of qualifications that allows the forgiveness of tax debt, most people will not meet that criterion. In order to receive protection from the court, if you have priority debts, you are often encouraged by bankruptcy lawyers in Rockford, IL, to consider filing a Chapter 13 bankruptcy seriously.

A Lot Depends on Your Goals

In addition to the type of debt you hold, your goals for the future also play into the decision. Do you want to move past this as quickly as possible and get on the road to a fresh start? If all of your debts are non-priority, Chapter 7 is your best bet. If you feel a strong desire to repay as much of your debt as possible, opting for a Chapter 13 might be right for you. Remember that while bankruptcy lawyers in Rockford, IL, will discuss both options with you, the final decision is yours.

If you believe that some form of personal bankruptcy is the only practical way to deal with your debt, contact Crosby Law Firm today and arrange a consultation. Call to make the necessary arrangements. We’ll determine if you meet the qualifications for bankruptcy protection and help you understand how each form of personal bankruptcy works.

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