Knowing which bankruptcy you qualhttp://gite-etoiles.com/wp-admin/admin.php?page=woothemesify for is an important factor when it comes to making this decision, so let’s take a closer look at how Chapter 7 and Chapter 13 bankruptcies and how they can help you to get your life back on track.
Why a Chapter 7 Bankruptcy Is Best
Chapter 7 bankruptcy filings are the best decision for a person who does not possess the income that is required to pursue a Chapter 13 bankruptcy. For Chapter 7 filers, they are able to decide between surrendering assets that they no longer wish to pay for each month, while also shedding a significant amount of unsecured debt.
This includes any expenses that are related to medical bills, as well as their credit card debts and any personal loans that have been defaulted on. Chapter 7 bankruptcy is a great decision, since it allows a debtor to move much more quickly than they would be able to under normal circumstances.
During a Chapter 7 proceeding, the debts can be wiped away within a mere three months of filing, offering the debtor a new lease on life from a financial standpoint. In most instances, they’ll wish that they had filed sooner instead of later.
Why A Chapter 13 Bankruptcy Is Best
If you are a debtor who has the means to make your way out from underneath your financial obligations and all you need is a little bit of extra time or to restructure your debt, then a Chapter 13 bankruptcy is your best possible decision.
Are you at risk of losing your home or you car, after you have already sank a great deal of your personal income into your past payments? Worried about surrendering the equity that you’ve built in your home? Filing for a Chapter 13 bankruptcy lets debtors rehabilitate their credit, by adhering to a court approved payment plan.
Best of all, a credit score is not severely affected by filing for a Chapter 13 bankruptcy. While public perception of these bankruptcies dictates that you will never be able to receive credit again, those who are in a position to file a Chapter 13 bankruptcy probably did not have a great credit score.
By filing, you can begin the process of restoring your good standing with creditors and be in position to receive loans and financing again within three to five years.
Filing bankruptcy can be incredibly stressful during the short term, but it can be the best decision that you’ve ever made when you take a moment to consider the long term benefits. You are able to start the process of restoring your financial solvency and receive a much needed reprieve from creditors’ harassing phone calls. If you’re willing to exchange short term comfort for long term stability, filing for bankruptcy is the best choice you can make.