Paul Caston is a bankruptcy attorney in Hattiesburg, Mississippi who helps individuals file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 involves liquidating assets to pay off debts, after which remaining debts are cancelled. Chapter 13 creates a 3-5 year debt repayment plan where debtors pay back a portion of debts based on their income and expenses. Chapter 7 is generally for those unable to pay debts, while Chapter 13 provides more time for those able to repay debts over 3-5 years.

2.  Paul Caston began practicing as an
attorney in Hattiesburg, Mississippi, in 2010.
Paul Caston of Hattiesburg is a debt relief
agency as defined by federal law. In this
position he helps people file for bankruptcy
relief, particularly Chapter 7 and Chapter
13 consumer bankruptcy filings.
When an individual decides that the time
has come to file for consumer bankruptcy,
Chapter 7 and Chapter 13 represent the
two most common choices.

3.  Understanding the differences between the
two is critical to beginning the bankruptcy
process on the right foot. Chapter 7, which can
be filed by individual consumers and
businesses alike, is so common that is has
become known as straight bankruptcy. Any
assets deemed nonexempt under Chapter 7
are transferred to a trustee who subsequently
liquidates the assets and pays off debtors with
the proceeds. After a person files for Chapter 7
bankruptcy, creditors can no longer seek to
recover funds from the debtor, and any
remaining dischargeable debts are cancelled.

4.  Chapter 13 bankruptcy, by contrast, takes into
account the debtor’s annual income in order
to restructure a debt repayment schedule of
three to five years. Over this period, the debtor
pays back zero to 100 percent of the original
debt depending on the debtor's income and
allowable living expenses. Therefore, Chapter
13 is usually required for consumers who have
sufficient income to pay off debts given the
benefit of extra time, while Chapter 7 is
permitted for debtors with insufficient income
to pay back what they owe at any point in the
near future.