Filing for bankruptcy is most definitely not something you would actually want to do if you wouldn’t be forced to. However, there are a lot of cases in which doing this is absolutely crucial if you do not want to end up in the street, buried in debt. At the same time though, it can be confusing for you to file for bankruptcy without understanding clearly what type of filing you have to make.
As you may have learned already, there are six types of bankruptcy for which you can file and each one of them is aimed at a certain category of people. For instance, Chapter 3 and Chapter 13 bankruptcy appear to be extremely similar at a first glance, but in truth they are very different. The main thing that makes them so similar to each other is related to the fact that both of them allow individuals to file for bankruptcy. At a closer look though, they are incredibly different and you should make sure to understand which one is best for you, so that you reap all the benefits of filing for bankruptcy.
The first difference between the two types of bankruptcy is connected to the fact that only Chapter 7 bankruptcy is aimed at both individuals and businesses, while Chapter 13 is aimed at individuals only. Furthermore, they are different in essence as well. While Chapter 7 bankruptcy is suitable for those with a lower income who have gathered a certain amount of debt, Chapter 13 bankruptcy is usually targeted at a segment of population who still has a very good income (even when in debt).
Declaring bankruptcy according to Chapter 7 means that a trustee will take all of your non-exempt assets (if you own any) and then he/she will sell them and pay your debtors with a small part of what you own them. According to Chapter 13 bankruptcy though, you will still have to pay your debtors out of your own money, without selling your assets (of course, you will pay much less than you would have otherwise).
The best way to know in which category you fall is to call for the service of a dallas bankruptcy attorney who will be able to advise you correctly, according to the situation in which you are. Furthermore, the same attorney will be able to represent your interests in court and he/she will be able to fight for the better outcome of this process.