Chapter 13 way of filing for bankruptcy can be one of the smoothest ways of minimizing debt, safeguarding assets, and starting a new chapter in your life. This kind of bankruptcy filing is suitable for filers who have a strong and reliable job, are looking to grow in their employment, and can sustain with same or higher pay scale for the next 5-10 years.
The basic logic behind Chapter 13 is to restructure your debts and dilute them with a better repayment plan to ensure debt payoff looks more reasonable and easier. This helps in avoiding the liquidation of assets like a house, car, or any other item of value that a filer would not like to liquidate for the payoff of debt. Since the assets are secured, the loans or debts released after Chapter 13 filing might be less. Only unsecured loans might be released, making it difficult to borrow again for at least 10 years.
Chapter 7 vs Chapter 13
- Chapter 7 will help you defend your most necessary assets however if you want to retain all your assets, Chapter 13 is the only alternative.
- Depending on whether you want to prevent your assets or your future income, you can make a choice between Chapter 13 or Chapter 7. In case of any confusion or issues do not hesitate to dial 888-297-6203 right now.
- There can be scenarios where there has been a sale of assets in recent times, it might be a secondhand car or any collection, valuable piece of art, these can make Chapter 13 a no-brainer.
- Sometimes, you are just not eligible for Chapter 7 and there is no option but to go for Chapter 13. However, before writing off the best chapter you might be eligible for, do log on to https://www.recoverylawgroup.com/bankruptcy/to learn more about bankruptcy and how you can still be eligible to file based on different exemptions and circumstances.
- The other significant difference between Chapter 7 and Chapter 13 is with respect to who can file. Businesses or institutions or Corporations cannot avail of relief under Chapter 13. They must consider Chapter 7 or Chapter 11 for such scenarios.
- Impact after filing bankruptcy with Chapter 7 will leave you with fewer assets and fewer debts. The pressure on future income is much higher for Chapter 13. You might have more assets and a higher lien or responsibility on your future income once you have filed bankruptcy through Chapter 13. This might be a challenge for Los Angeles and Dallas, TX As the job market is so dynamic and competitive.
The provisions in each Chapter can be beneficial or flawed depending on individual scenarios. It is very difficult to have a blanket solution for all. To figure out what’s best for you and whether bankruptcy is even required for you, dial 888-297-6203, right now.