Chapter 7 Bankruptcy or Chapter 13 Bankruptcy?
Nearly two third of bankruptcy filings are for Chapter 7.
Chapter 7 Bankruptcy is fast, with most discharges obtained in less than 5 months. The process and results are simple: you eliminate most of your assets and all of your debts. You can then go on with your life, which is why most filers who qualify choose Chapter 7.
When a business uses Chapter 7, it closes its doors. The creditors liquidate what is left, and share the money obtained.
In the other commonly used form of bankruptcy, Chapter 13, you will make payments on your debts for 3 to 5 years. Chapter 13 can make financial sense when you have fallen behind on mortgage payments but want to keep your house. Chapter 13 can also help you clear a second mortgage for pennies on the dollar.
In addition, Chapter 13 can help you if you are not eligible for Chapter 7 because you (1) filed for Chapter 7 within the last 8 years, (2) make more than the median household income, or (3) have a lot of non-exempt assets which would be taken from you under Chapter 7 bankruptcy.
We are a trusted bankruptcy law firm that pursues fair, reasonable and solution-focused strategies on behalf of our clients. Learn more about your options and alternatives to foreclosure. Contact us today to work with a lawyer who cares about your situation.