What Bankruptcy Chapter Is Right For Me?
There are a number of reasons why you may need to file for bankruptcy. In some instances you may be battling unforeseen circumstances such as job loss, divorce or unexpected medical bills. All of a sudden you are unable to make the required payments each month and are using credit more than you wish. You may have spent outside your comfort zone and are now unable to make up the debt. You may wish to start again. Both Chapter 7 and Chapter 13 bankruptcy allow you to come to terms with your debt and offer a solution to overcoming these problems. But which one is right for you?
Chapter 7 or Chapter 13 Bankruptcy?
Both chapter 7 and chapter 13 bankruptcy provide you with an opportunity to discharge certain unsecured debts and move away from financial stress. Both will stop creditors from harassing you at home and at work and both will put an end to wage garnishment. Chapter 7 is the most common type of bankruptcy and is, in general, the extreme solution to your financial woes. Chapter 13 provides an alternative to liquidation that allows you to negotiate a payment plan for 3-5 years before your unsecured debts will be discharged.
Chapter 7 bankruptcy is, essentially, your better option if:
- You do not have a lot of assets
- You do not have a steady source of income to cover your debts
- You are overwhelmed in debt
- You are willing to ‘liquidate’ certain assets if necessary
Chapter 13 bankruptcy is the better option if:
- You are having trouble keeping ahead but do not want to go to the extreme of liquidation
- You have a steady source of income
- You do not want to lose your assets
- You are able to make regular payments towards your debt
Bankruptcy Options
Keep in mind that there are other alternatives to chapter 7 and chapter 13 bankruptcy including loan modifications and short sales. It all depends on your financial situation – are you struggling with credit card debt only? Are you worried about foreclosure? Are you finding it impossible to get ahead with the high interest rates and late fees? Our lawyers will help decide what the best solution is for you and which chapter, if any, would benefit you the most.
Bankruptcy Lawyer & Attorney Minneapolis
Most people who choose to file for bankruptcy are not looking for an easy way out- they are looking for a way to alleviate the debt and the stress so they can successfully move on financially and emotionally. We understand how hard this situation is and are available 24/7 to meet with you and discuss any questions or concerns you may have.
We represent bankruptcy clients in matters involving Chapter 7 bankruptcy, Chapter 13 bankruptcy, wage garnishment, creditor harassment, foreclosures and debt consolidation. Contact Myles A. Schneider & Associates, Ltd. 24 hours a day, seven days to week at 763-315-1100 to see how we can help you.
