Chapter 7 vs Chapter 13 Bankruptcy: Which is Right for You?

Bankruptcy can be a scary thing to consider, but it's important to know that it's not a 'one size fits all' solution. Before filing for bankruptcy, it's important that you know the difference between the types of bankruptcy available. Two of the most common types of bankruptcy are Chapter 7 and Chapter 13. In this post, we'll explore the differences between the two and which one may be right for you.

Difference Between Chapter 7 Bankruptcy And Chapter 13 Bankruptcy

Chapter 7 bankruptcy is often referred to as a 'liquidation' bankruptcy. This means that a trustee will be appointed to oversee the liquidation of your non-exempt assets. This money will then be used to pay off your creditors. Chapter 7 is generally a faster process, taking about 3-6 months to complete, and is often recommended to those who don't have significant assets to liquidate.

Chapter 13 bankruptcy is referred to as a 'reorganization' bankruptcy. This means that rather than selling off your assets, you will create a repayment plan to pay off your creditors over a period of 3-5 years. Chapter 13 is generally recommended to those who have a regular income and are able to repay their debts, but may need some breathing room to do so.

Who Should File For Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a good option for those who have a regular income and have the ability to repay their debts over time. It's especially recommended for those who may be at risk of losing their home to foreclosure, as Chapter 13 can often help stop foreclosure proceedings. Additionally, Chapter 13 allows for debt consolidation, which can make it easier to manage your payments.

Who Should File For Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is generally recommended to those who don't have significant assets to liquidate and who may not have the ability to repay their debts. Chapter 7 is often a good option for those who have a lot of unsecured debt, such as credit card debt or medical bills. It's important to note that not all debts are dischargeable under Chapter 7, so it's important to speak with an attorney to determine what debts can be discharged.

At Law Office Of Calvin Craig We Can Assist The Raleigh Public With Bankruptcy Matters.

If you're considering filing for bankruptcy, it's important to speak with an experienced bankruptcy attorney to help guide you through the process. At Law Office Of Calvin Craig, we have years of experience helping clients in Raleigh with their bankruptcy needs. We'll work with you to determine which type of bankruptcy may be right for you and help guide you through the entire process.

Filing for bankruptcy can be a daunting process, but it's important to know that there are options available to help you get back on track. Chapter 7 and Chapter 13 bankruptcy are two of the most common types of bankruptcy, and it's important to decide which one is right for you based on your individual circumstances. If you're in Raleigh and considering bankruptcy, don't hesitate to contact Law Office Of Calvin Craig to speak with an experienced attorney who can help guide you through the process.