Filing for bankruptcy can be a difficult decision. It is important to understand what type of bankruptcy will best suit your needs. In this blog post, we will discuss the differences between chapter 7 and chapter 13 bankruptcies. We will also explain how each one can help you get out of debt. If you are considering filing for bankruptcy, it is crucial that you speak with a lawyer to learn more about your options.
Chapter 7 Bankruptcy
When most people think of bankruptcy, they are referring to chapter 7. This type of bankruptcy allows you to discharge most of your debts. In order to qualify for Chapter 7, you must pass a means test. This test looks at your income and expenses to determine if you can repay your debts. If it is determined that you cannot repay your debts, you will be eligible for chapter seven.
Chapter 13 Bankruptcy
Chapter 13 is another type of bankruptcy that can help you get out of debt. This type of bankruptcy is also known as a reorganization bankruptcy. With chapter 13, you are able to create a repayment plan to repay your debts over a three to five-year period. After you have completed your repayment plan, any remaining debt will be discharged.
If you are considering filing for bankruptcy, it is important that you speak with a lawyer to learn more about your options. Bankruptcy can be a difficult decision, but it may be the best option for getting out of debt.
While bankruptcy can be a helpful tool for getting out of debt, it is important to remember that it is not a cure-all. You will still need to make financial changes in order to avoid falling into debt in the future. But, if you are struggling to make ends meet and debt is taking over your life, bankruptcy may be the best option for you.
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Bankruptcy can be a difficult decision, but it may be the best option for getting out of debt. Contact us today to schedule a consultation with one of our experienced bankruptcy lawyers. We can help you understand your options and make the best decision for your situation.