When most people under a punishing debt burden decide to achieve financial freedom through filing for bankruptcy, it is a difficult choice at best. But it is an option chosen by many who are at the very ends of their financial tether and such people have a few options that they can consider.
If you are actively considering bankruptcy as a way to set you back on your feet financially, choosing among Chapter 7 and Chapter 13 is one of the choices that you may have to make. You may even need professional help in order to make this decision as you need to understand the consequences of selecting one of these.
Seattle Bankruptcy Lawyer, Best Bankruptcy Attorney, Bankruptcy Lawyer Help,
Bankruptcies filed under Chapter 7 are meant for people with non-exempt assets that can be used to eliminate debt. Assets such as home equity and pension funds are among exempt assets and any nonexempt assets can be liquidated and the proceeds can be used to reduce or eliminate your debt burden. However, it is worthy of noting that only 5% of the people filing for Chapter 7 bankruptcies have any assets worth selling.
On the other hand, people filing for bankruptcy under Chapter 13 have the option of setting up a repayment plan in consultation with the creditors. In most of the cases, the negotiations can ensure significant reductions in the amount outstanding and the debtor may find them easier to pay off. So, the question now is, how do you make the choice between Chapter 7 and Chapter 13 bankruptcy?
This is where a bankruptcy lawyer with a good track record can help you make a decision and guide you through the process. Regardless of the choice that you make between Chapter 7 and Chapter 13, you should understand that you still need to make payments to your creditors - for example, you need to pay the mortgage on your home and the payments for your automobile. These payments need to continue even if you are trying to clear all outstanding debts as you will still need your house.
So that means that you don't fall behind on your mortgage payments. However, if you are behind on mortgage payments and you are declaring bankruptcy in an attempt to make sure that the mortgage company doesn't foreclose, Chapter 13 is probably your best bet. You can also draw up a repayment plan if you are not eligible to file for bankruptcy under Chapter 7.
Chapter 7 and Chapter 13 can get you out of your financial bind caused by mounting debts if used appropriately. You need to learn as much as possible about both and how they can be applicable for your situation before choosing between them.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Indiana
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment