People facing bankruptcy often have two choices when it comes to filing: File for Chapter 13 or file for Chapter 7. Both Chapter 13 and Chapter 7 can erase debts, but there are certain pros and cons to each one. Below is an overview of the benefits of Chapter 13 and Chapter 7 bankruptcy proceedings.
People generally choose to file for Chapter 13 bankruptcy when they:
It is important to note that there are limits on the amount of debt that a person can have when filing for Chapter 13 bankruptcy. You should talk to a Michigan bankruptcy lawyer to make sure that you can file for Chapter 13, or to discuss whether Chapter 7 might be a better option for you.
People often choose to file Chapter 7 bankruptcy because it is quicker and easier to erase some debts. Chapter 7 offers people a fresh start, so to speak, and gives them a clean slate by removing most of their debts (some debts can’t be erased, such as student loan debt and child support and alimony). Chapter 7 bankruptcy does not require a repayment plan, and filers get to keep their future wages.
Chapter 7 is only available to some people. Somebody who files for Chapter 7:
Whether to file for Chapter 13 or Chapter 7 depends on your situation and finances. There are pros and cons for each type of bankruptcy filing, and there are specific rules that apply for each one. It is important to work with a bankruptcy attorney when considering all of your debt discharge options.
If you are considering bankruptcy, but are unsure whether Chapter 13 of Chapter 7 is best for your particular situation, you can discuss this matter with a Michigan bankruptcy lawyer at The Office of Karen E. Evangelista, PC. Please contact us today by calling 248.652.7990 or send us an email through our online contact form available below.