In many situations, people find themselves running into financial problems that make it difficult to stay afloat. Extraordinary debt, unforeseen circumstances, and sudden loss of income can make it so you are spending more on your debt than you are bringing in.
Bankruptcy can potentially help.
If you are considering bankruptcy, it’s vital to recognize which option is best for you. In most situations, you’ll choose between Chapter 7 and Chapter 13 bankruptcy. We’ll explain what each of these can mean for you and help you decide which situation works best for your needs.
What Does a Chapter 7 Bankruptcy Do?
In a Chapter 7 bankruptcy, the idea is to discharge most of your debts completely. This type of bankruptcy can clear unsecured debts, but not student loans and child support. However, when you file for Chapter 7 bankruptcy, some of your possession may be subject to forfeiture.
One of the biggest benefits of Chapter 7 bankruptcy is the opportunity to start over without facing harassment from creditors. Chapter 7 is the best option for those hit with unforeseen circumstances and no longer earn an income to cover the costs of the debt.
What Does a Chapter 13 Bankruptcy Do?
In a Chapter 13 bankruptcy, you are working to consolidate your debts into a manageable payment schedule that both you and your creditors can agree upon. Because you and your creditors are working together on the agreement, this can stop creditor harassment from occurring.
In most cases of Chapter 13 bankruptcy, your possessions are not up for forfeiture. You’re scheduling payments to stay in good standing and working to clear your balances. Chapter 13 bankruptcy can look much better on your credit report than clearing your debt completely in a Chapter 7.
We know how difficult it can be to make a decision regarding filing for bankruptcy. You’re not sure what to expect and how it can impact you in the long run. Speaking with an Okemos bankruptcy attorney can help you better understand how to make decisions that fit your needs.
At White Law PLLC, we focus on your best interests every step of the way. We’ll analyze your situation and help you determine which option fits your situation most effectively. We’re ready to be your guide out of debt and walk you through to a better, more comfortable life.
Call us today at (517) 316-1195 to discuss your options.