Though both Chapter 7 and Chapter 13 bankruptcy can help you get back on your feet financially, there are some key differences in the benefits each provides. A Dallas bankruptcy attorney will be glad to confer with you to decide which will be the best to alleviate your specific financial problems.
For example, Chapter 7 bankruptcy is designed for low-income earners. It aims to completely eliminate all unsecured debt, meaning debt that isn’t tied to property, such as credit cards, personal loans, utility bills and more. Chapter 7 wipes your debt clean by liquidating all assets and distributing this amount between your creditors.
Chapter 13, on the other hand, is for high-income earners, those that make more monthly than the state average. Chapter 13 bankruptcy seeks to create a repayment plan for the filer, giving them an average of 36 to 60 months to repay a portion of their debts to creditors. This type of bankruptcy can be used on secured debt, so in the event you have an outstanding mortgage or car loan, Chapter 13 can keep you from foreclosing on your home or having your car repossessed.
Whichever type of bankruptcy you choose to file, it is important to seek legal counsel before beginning the filing process. Learn more about filing for Chapter 7 and Chapter 13 first by reading our free eBook, What You Need to Know about Bankruptcy, and then by contacting a Dallas bankruptcy attorney at Warren & Migliaccio. Call 888-584-9614 today.