Is Chapter 7 Bankruptcy or Chapter 13 Bankruptcy a Better Option?

 Posted on January 30, 2023 in Bankruptcy

If you have decided that filing for bankruptcy will help you to get your finances back on track, it is time to decide which kind of bankruptcy relief you will be requesting. In most areas of the country, individuals and married couples filing jointly have two primary options: Chapter 7 and Chapter 13 bankruptcy. The matter of which one is a better option depends upon a filer’s unique priorities, needs, and financial situation.

Chapter 7 Bankruptcy

If you are eligible to file for Chapter 7 bankruptcy, you are not facing an immediate risk of foreclosure, and a significant fraction of your debt is eligible for discharge, this is likely to be the best option for your circumstances.

At the conclusion of a successful Chapter 7 bankruptcy case, a filer’s eligible unsecured debts—including credit card bills and overdue medical accounts—are discharged. This means that the debt is wiped out and affected creditors can no longer demand repayment.

This type of bankruptcy relief is made available to low-wage earners. Meaning, it is not available to everyone. Depending on the type of debt you are struggling with, this opportunity could afford you a fresh financial start.

Chapter 13 Bankruptcy

If you are facing a real risk of foreclosure on your home and/or you could better manage your debt if only your payment obligations were more realistic, filing for Chapter 13 bankruptcy could be a great option for you. As a Chapter 13 filer, you would commit yourself to three to five years of manageable monthly repayments on your debt, after it has been restructured and largely consolidated.

Filing for Chapter 13 bankruptcy is often a good idea for people who can reliably make debt payments but who also need those payments to be more manageable. This opportunity can also allow homeowners to catch up on missed mortgage payments so that they can save their homes.

Contact an Experienced San Antonio Bankruptcy Lawyer for Personalized Guidance

You will need to carefully evaluate your circumstances before deciding whether to file for Chapter 7 or Chapter 13 bankruptcy relief. If you would like assistance making an informed decision, the compassionate San Antonio, TX bankruptcy lawyers at Law Offices of Chance M. McGhee can help. We offer a confidential, no-risk consultation at no charge. Why? We believe that everyone deserves to understand their rights and options.

You can schedule your free case evaluation today by submitting a contact form on our website or by calling us at 210-342-3400. We look forward to speaking with you and to maximizing the benefits of the bankruptcy process on your behalf.

Source:

https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics