CHAPTER 13 VS. CHAPTER 7
WHAT IS THE DIFFERENCE?
Bankruptcy may sound intimidating, but it can help you get out of an unbearable financial situation. Chesterfield bankruptcy can be a powerful and useful tool when used appropriately. The many different types of bankruptcy offer individuals and business owners various options that can address many different situations. Questions to ask yourself when considering bankruptcy:
- Do I make too much money to file Chapter 7?
- Have I cut out non-essential expenses (dining out, high-end cable packages, etc.)?
- Do I have enough debt for Chapter 13?
- Do I have substantial debt that bankruptcy doesn’t cover (alimony, child support, etc.)
- Have I tried working with creditors regarding payments?
These are questions your Chesterfield bankruptcy attorney will ask and can help you understand where and how you’ll be making financial changes.
Two of the most common types of bankruptcy are Chapter 7 and Chapter 13. Here, we discuss some of the main differences between the two to help you better understand what bankruptcy can accomplish and what may be right for you and your family.
WHAT IS CHAPTER 13 BANKRUPTCY?
Chapter 13 bankruptcy, also known as a wage earner’s plan, requires you (the filer) to have a steady stream of income even if that income is not enough to keep up with bills. The bankruptcy process examines and reorganizes your debt to simplify and even reduce payments.
A Consolidated Plan for Debt Elimination
Some of the key components of a Chapter 13 bankruptcy include:
CHAPTER 7 BANKRUPTCY
Discharge Debt for a Fresh Start
Chapter 7 bankruptcy is typically appropriate for those who do not have a steady stream of income or otherwise simply do not have the ability to pay. Filers must meet certain income limits; those who make too much will likely have to pursue a Chapter 13 bankruptcy.
Some of the main elements of a Chapter 7 bankruptcy include:
STOP THE CALLS!
CHAPTER 13 & CHAPTER 7 BANKRUPTCY
If you or someone you love is struggling under the weight of debt, bankruptcy may offer a way out of the stress and suffering. Bankruptcy can be an effective tool to address your debt and find a fresh start to your financial life. Contact us today to learn more about the bankruptcy process in Virginia and find out what options may be available to you.
IN CHESTERFIELD, VIRGINIA?
NEED A CHAPTER 13 OR CHAPTER 7 BANKRUPTCY ATTORNEY?
CONTACT US TODAY!
The attorneys at Chesterfield Bankruptcy Law can help you determine if bankruptcy is the right debt relief option for you.
Bankruptcy is a last resort. There may be alternatives that can help you deal with the financial burden. Call us at 804-706-1355 for more information and to find out if bankruptcy is the best option for you.