First, let us say that if you’re facing a potential bankruptcy, you are certainly not alone. Because it’s an issue most often kept secret, many of our clients are surprised to discover how common bankruptcy truly is. In fact, it’s likely that you know someone who’s been in this same position before. Still, just because it happens more frequently than you might expect, it is not a matter to take lightly. There are several benefits to filing bankruptcy, but there are also many choices and consequences. Let’s discuss some of the ones that are probably on your mind already.
Without question, chapter 7 bankruptcy is the most popular option. This form of resolution allows individuals to repay their debtors by means of asset liquidation. Though this type of relief may require you to acquire liens and mortgages, it will typically prevent you from owning any additional money, which can be an attractive benefit. Furthermore, many people are able to retain their property through exemption laws. Please contact our office to see which exemptions you may qualify for.
Chapter 13, in contrast, acts like a consolidation loan under which you make payments to a trustee who then distributes the payments to your creditors. This form of relief usually reduces stress and lowers your monthly payments. Additionally, it allows you to retain your assets given that you make your payments on time throughout the duration of your plan. Still, there are certain requirements you must meet in order to be eligible for chapter 13 bankruptcy. A trained attorney can evaluate your eligibility and determine if it is the best solution for you.