You must be wondering which is better, Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. The truth is, it depends on your situation and the amount of money you make each year. If you make less than the median level of income for your state, chapter 7 may be a better option for you. If you make more than the median amount of income, then chapter 13 may be a better option. To find out which one will be better for you, contact a bankruptcy lawyer as soon as possible.
Chapter 7 Bankruptcy
With chapter 7 bankruptcy, you will be allowed to keep essential assets. Any non-essential assets will be handed over to a trustee. The trustee will sell each of the assets and use the money from the sales to cover your debts. Any allowable debts that are remaining may be discharged so you no longer owe them. This is better for someone who doesn’t have a large amount of income and has too much debt to repay with payments.
Chapter 13 Bankruptcy
With chapter 13 bankruptcy, you will be allowed to keep all of your assets. You will have to reorganize your allowable debts into one monthly payment. As long as you make your payments on time, you may be able to discharge the remaining debts when your payments are complete. This process typically takes about three to five years to complete. This is a better option for someone who can afford to make payments on their debts when they’re consolidated into a smaller monthly payment.
In summary, the type of bankruptcy that could be better for you depends on the amount of debts you have and your income. If you’re wondering whether you should file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, contact a bankruptcy lawyer as soon as possible. They’ll be able to review your income and expenses to determine which one is going to be right for you. Then, they’ll help you through the entire process, from filing your bankruptcy to completing the bankruptcy. You will be able to get your finances back on track, and your lawyer can even help explain how the bankruptcy will likely impact you over the next few years. Contact your lawyer today with any questions you may have.
