What Type of Bankruptcy is Right for Me?
At Sno-Isle Bankruptcy, we handle both Chapter 7 and Chapter 13 bankruptcy to allow clients the flexibility to choose which form of bankruptcy best meets their individual needs. We have provided below a summary of some of the major differences between Chapter 7 and Chapter 13 bankruptcy. To speak with an attorney about questions specific to your situation, contact Sno-Isle Bankruptcy today.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is designed to provide people who are struggling with debt a fresh start. With a Chapter 7 bankruptcy, you may discharge credit card debts, medical bills and most other forms of consumer debt.
Since Chapter 7 bankruptcy is a debt liquidation bankruptcy, certain property or assets may be liquidated to pay creditor's claims as part of the process of discharging debts. However, with bankruptcy exemptions and the option of selective debt reaffirmation, most individuals who file for Chapter 7 bankruptcy are able to keep most, if not all, of their personal property.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is sometimes referred to as a debt reorganization bankruptcy because it enables people to pay their debts more gradually through a payment plan that typically lasts between three to five years. If your debt repayment plan is approved by a bankruptcy court, your creditors must abide by the terms of the court's order.
In addition to gaining relief from adverse creditor actions like home foreclosure or auto repossession, you may be able to discharge a portion of your debts.
Choosing Between Chapter 7 and Chapter 13
Before you choose which type of bankruptcy is right for you, speak with an experienced bankruptcy lawyer. A bankruptcy attorney will help you determine:
- Whether you are eligible for Chapter 7 bankruptcy. Some people are not eligible and must file for Chapter 13 bankruptcy.
- Do you have assets that could be liquidated in a Chapter 7 bankruptcy? Many people who contact our office are able to protect all or most of their property, but that is not always the case. For people with significant assets and a good source of income, Chapter 13 may be a better option.
- Have you previously filed for Chapter 7 bankruptcy in the last eight years? If so, you may need to wait to file for a Chapter 7 bankruptcy again, or file for Chapter 13.
- Do you have large unsecured debts that may not be discharged through a Chapter 7 bankruptcy (certain tax debts, child support debts and school loans may not be subject to discharge)?
Contact a Washington Bankruptcy Attorney
It is only by speaking with you and learning about the specific facts of your situation that a bankruptcy attorney can provide the information you need to make an informed decision about the type of bankruptcy that is best for you. Get started today by scheduling a free consultation at Sno-Isle Bankruptcy in Everett, Washington.
