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What Should You Choose? Discuss Your Options With A Rochester Bankruptcy Attorney

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:

  • Are not allowed to file for Chapter 7 bankruptcy.
  • Want to repay some of their debts. Chapter 13 bankruptcy requires people to make a repayment plan. You could end up paying back a portion, if not all, that you owe.
  • Want to protect their assets, such as protecting their house from foreclosure, or protecting their vehicle from repossession.
  • Have certain debts that can’t be erased with Chapter 7 bankruptcy, but can be erased by Chapter 13 bankruptcy.

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.

Chapter 7 Bankruptcy

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:

  1. Must not make too much money;
  2. Cannot have filed for Chapter 7 bankruptcy in the past eight years, or Chapter 13 in the past six years;
  3. Cannot have filed for bankruptcy within the previous six months; and
  4. Must have met other requirements for Chapter 7 bankruptcy.

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.

Get In Touch With A Michigan Bankruptcy Attorney Today

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.


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