Chapter 7 and Chapter 13 are the two most important chapters in bankruptcy. Some characteristics that swing the balance to Chapter 7 or Chapter 13 for an applier can be listed as follows-
Consider Chapter 7-
- If you have a higher percentage of unsecured debt, chapter 7 can be beneficial. These can be medical bills, credit card dues, personal unsecured loans, payday loans, and other loans which do not have collateral. To know a more in-depth analysis of what kind of debt you have and whether chapter 7 is appropriate, log on tohttps://recoverylawgroup.com/bankruptcy/
- If you have an irregular source of income and it is very difficult for you to carve out basic shelter and food expenses.
- If you do not have the resources to even hire a bankruptcy lawyer
- If your debts do not have any non-dischargeable debts like alimony, child security, taxes, and similar obligations
- If your current income does not allow for a long-term structured repayment plan
Consider Chapter 13-
- If you have assets that cannot be protected using the exemption code. If you are in Los Angeles, and Dallas TX, then dial 888-297-6203 to know about what is exempted assets and how some of your assets can be exempt from liquidation even under Chapter 7 bankruptcy.
- If you want to retain your home and want to make up for the defaulted payments
- If the majority of the debts cannot be discharged
- If you have secured debts with high-interest rates and lower resale value
- If you have multiple mortgages
- If you are going for a divorce and property settlement money is in question
The above list to opt for Chapter 13 or Chapter 7 is not an all-inclusive list. There can be scenarios, where there might be some other strategic reasons to choose Chapter 7 over Chapter 13 and vice-versa.