If you are overwhelmed by debt, declaring bankruptcy may be a beneficial way to find relief. Before making the final decision to file, it’s essential that you know the basic differences between Chapter 7 and Chapter 13 bankruptcy law.
Chapter 7 Bankruptcy
If you choose to declare Chapter 7 bankruptcy, your non-exempt assets will be sold by your bankruptcy trustee, and the proceeds will be used to settle your debts. One of the main benefits of filing under this bankruptcy law code is that there is no minimum debt requirement to file.
You should consider filing for Chapter 7 bankruptcy as opposed to Chapter 13 if you have little property, are unable to manage your basic expenses, or have minimal funds leftover after paying your monthly bills.
Chapter 13 Bankruptcy
In comparison, under the Chapter 13 bankruptcy law requirements, if you file for this type of consumer bankruptcy, the bankruptcy court will set up a repayment plan for you to repay a portion of your debts within a specified time period. Once this time period has passed, your debts will be discharged.
This type of consumer bankruptcy may be the right solution if you own property or a home and do not want to lose it during the discharge process, or if you can manage your basic living expenses but continually fall behind on your debt payments.
If you live in Charlotte or the surrounding area in North Carolina, we can help you determine which type of consumer bankruptcy is right for your personal situation and guide you throughout the duration of the process. Don’t wait – contact us today.