Types of Bankruptcy 

Knoxville Lawyer for Chapter 7 & Chapter 13 Bankruptcy

Each year in the United States, over 1 million individuals file for bankruptcy. Our nation's current economic climate has reached a critical state having been built around a less-than-ideal system of financial institutions such as credit companies and lenders. It seems virtually impossible for anyone to keep up with the cost of living and interest rates skyrocketing, while their income remains the same, or even worse, decreases. It is plain to see how so many individuals are exploring the possibility of bankruptcy these days. The lawyers of Saffa Law Group, P.L.L.C. want you to know there is no shame in this; financial crisis is more and more common in today's society, where our hard working citizens have little choice other than to depend upon an economic system powered mostly by credit companies and lenders. Fortunately, the United States has laws which allow some options for recovering from a negative financial situation, and eliminating debt. A person in serious financial trouble can seek some respite by filing for bankruptcy to make a fresh start.

Two particular types of bankruptcy which can strongly aid in debt relief are known as Chapter 7 and Chapter 13. Chapter 7 is an ideal option for those who want their debts discharged in the timeliest manner possible. It is also the better choice for people not earning steady income at that time, or who are unemployed. Chapter 13 offers an alternative to qualifying people maintaining a steady income, but who need an extended amount of time to pay off their debt. The difference being  mainly that people who file for Chapter 13 do not discharge their debt completely, but instead, pay if off over a period of 3-5 years.