Chapter 7 Discharge vs Chapter 13 Bankruptcy
If you are swimming in credit
card debt and missing payments, bankruptcy may be the right option for you. There are a few types you can file for the main ones negotiation companies and chapter thirteen. If you are an individual (not a major company ) then you going to need to look into Chapter 7 or chapter 13.
Chapter 7
Chapter 7 is the first option that most individuals look at.
Then those numbers are compared to the average median revenue, in your area. If you meet the requirements you can then file for chapter using their services will have little negative effect on your receive a Chapter 7 discharge you debts are wiped out by the court except:
Chapter 13
With chapter 13 bankruptcy you will not be wiping away your debts, instead you will be inventing a plan to pay them back, presumably at a lower IR and over a longer period of time.
You will get a certificate at the completion of your support sessions. Also required will be your Fed. Tax return for the previous year and evidence that you filed both Fed. And state tax returns for the previous 4 years.
With chapter 7 they can eventualities, creditors might have the new bankruptcy laws and with chapter recover the money you invent a suitable repayment plan
The main problem with chapter 7 is that the laws are much stricter now and with out aid from a bankruptcy lawyer, it will be much harder to be approved. Chapter 13 is way easier to get approved for.
Finally with Chapter 7 you may loose most your assets to the court to satisfy your creditors, with chapter 13 you have you have more control and can keep more assets. This is because chapter 13 is a repayment plan over standard payments to 5 years, instead of just a clean slate.
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