Bankruptcy Differences
When people think of bankruptcy they get confused as there are
several different kinds that you can declare. It is never
something that someone wants to do as they know the
repercussions that it will have on their credit for years to
come, but sometimes it is necessary to have to do what you have
to do. It may be a necessary evil, but it has helped millions
get back on their feet after a devastating financial crisis, and
in this economy there are more and more people turning to them
when things like debt consolidation do not help.
But how do you know which kind is best for you? Well, your
bankruptcy attorney will really help you with that. First they
will go over your options for debt consolidation and settlement
and that line of taking care of your debt. If these are not
options, or you have already tried them, they will discuss what
your options are. As a personal filer you are really looking at
Chapter 7 or Chapter 13 to declare.
Chapter 7 is what most people file. They are living from
paycheck to paycheck and have had some kind of financial crisis
like job loss or medical bills, that make it impossible to pay
their bills. They file Chapter 7 and it wipes out all of their
debt. They don’t have many assets so it is quick to file and
take care of. Chapter 13 is for those people who have assets
that are likely to be taken into consideration when filing. They
have an income coming in, and they simply cannot afford their
debts. They work out a payment plan and pay off reduced debts
over three to five years – and then they are debt free.
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