Our attorneys have experience assisting clients with both Chapter 7 and Chapter 13 Bankruptcy. We can help you determine which type of bankruptcy is the best fit for your situation and work with you to develop a plan for discharging your debt and protecting your assets.
Chapter 7 Bankruptcy
When filing for Chapter 7 Bankruptcy, your unsecured debts become discharged. This means that you will no longer be responsible for any of your debts that do not have collateral such as hospital bills, credit card debt, and utility bills. You will likely be able to keep your home and car if you choose.
With Chapter 7 Bankruptcy, your debt-to-income ratio becomes much smaller and more manageable. You then have a chance to start fresh at rebuilding your credit.
Chapter 13 Bankruptcy
With Chapter 13 Bankruptcy, you create an approved debt repayment plan to follow for 3-5 years. During this time, your creditors cannot take action against you for collections, and you make payments to a trustee who distributes the money to your creditors.
After the 3-5 year period, your unsecured debts are discharged and you have the opportunity to begin rebuilding credit.