You’ve used all your resources up. Your credit card debt is through the roof and you took out all the loans you could take. You have come to the point where you have to file for bankruptcy. How does it work? Which bankruptcy option will work best for me? The two main forms of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 is the most common form. It’s best known for being the simplest and fastest form of bankruptcy. Chapter 13 bankruptcy is most popular for allowing you to keep your assets. Either case, it’s essential to know the differences of each so that you can make the most informed and appropriate decision.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy gets rid of most unsecured debts. These debts include things such as medical bills and credit card payments. In order to qualify for chapter 7 bankruptcy, you must meet a certain income requirement. If you make more than this income requirement, then you’ll have to file under chapter 13 bankruptcy instead. Chapter 7 bankruptcy has an “automatic stay” policy. This prevents most creditors from pursuing collection efforts. This form of bankruptcy is working well if you have a lower income and little to no assets. Under this form of bankruptcy, you’ll get appointed a bankruptcy trustee to help you during the whole process and to sell your non-exempt property.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is for people with a regular income who have the ability to pay some of their debt off each month. This is for people who make too much income to qualify for chapter 7 bankruptcy. In this form of bankruptcy, you get to keep all of your property. As mentioned previously, you will have to pay some or all of your debt monthly, this will be through a repayment plan. This form of bankruptcy works for people who have non-dischargeable debt and want to pay it off in 3-5 years. This includes things such as child support and alimony. It’s for people who want to catch up on payments and still be able to keep their property. For example, they want to keep up with their house and/or car payments even though they may be falling slightly behind. Chapter 13 bankruptcy is for people who simply need a relief. They want to stop litigation, decreased credit card payments, and/or prevent wage garnishment.
Getting through bankruptcy can be extremely tough. It can happen to anyone. There’s no shame in having to file for bankruptcy, many others have done it before. It can definitely help you get back on the right track. Now it’s your time to reach out for help. You do not need to go through this alone. Justin Myers attorney-at-law is here to help lift the weight off of your shoulders. He will not only give you all the information you need but he will help to educate you and gain control over your finances again. He will help you make a smart and informed decision when it comes to filing for bankruptcy. You can reach them by phone at 1-801-505-9679 or via e-mail.