Boca Raton Bankruptcy Lawyer

Chapter 7 & 13 Bankruptcy Overview

The Bankruptcy Code is based on Section 11 of the United States Code. It was created to help honest debtors escape the pressures of overwhelming debt and get their lives back on track. As such, it isn’t designed so much to penalize people as help them. As this is true, it is the job of a bankruptcy lawyer to help their clients even more than they normally would.

Currently, consumer debt is at an all-time high in the United States. This is measured by comparing the general level of indebtedness of American households to the amount of disposable income. With the all time high amount of consumer debt comes an all time high number of bankruptcy filings. This is true even though a lot of laws went into place in September of 2005 that make it much harder to file for bankruptcy.

The two main types of bankruptcy filings available to individual consumers are Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy is the form of bankruptcy that removes the obligation from the shoulders of the debtor to repay the debts. Chapter 13 is also known as the wage earner’s plan. It creates a plan for the debtor to repay their debts over a period of time in a manner that is approved by a bankruptcy court.