Maida Law Firm, P.C. Articles Chapter 7 Vs Chapter 13

Chapter 7 Vs Chapter 13

By Maida Law Firm, P.C.  May. 6, 2013 4:56p

Choosing The Best Bankruptcy Claim For You And Your Family

Every year, millions of US citizens are forced to file for bankruptcy in order to survive these troubled financial times. Should you find yourself at the end of your rope, burdened by seemingly insurmountable debt and harassed by tireless creditors, there is a solution ahead! Please, do not hesitate to speak with an attorney to discuss your options and see if a bankruptcy filing is right for you. One of the most important decisions you make will be to pursue Chapter 7 or Chapter 13, and the answer may determine the next few years of your life.

Chapter 7: Debt Liquidation

If you and your family are faced with a huge amount of debt and have little hope of paying it off through normal means, Chapter 7 may be the best choice for you. You will first have to undergo the means test, wherein your average income will be compared to the median level in your state. Should you pass, you will begin the process of liquidating whatever eligible assets you possess. This usually takes no longer than a few months to complete. The proceeds from this process will then be used to pay off your creditors, wiping away your debt and allowing you to begin anew!

If you possess little in the way of non-exempt assets that you need to protect, Chapter 7 is likely your best option. If you do own a significant amount of property, or if you have a regular income, you may wish to pursue the next option instead.

Chapter 13: Debt Restructuring

In this process, the court will examine your finances and debts, and restructure your mortgage, car payments, and any other debts into a single monthly payment designed to fit under your current level of income. Once this plan, which usually lasts for three to five years, is finished, your remaining eligible debts are waived and your creditors considered to be satisfied.

This filing is often the best choice for households with significant assets or a steady income, allowing you to retain ownership of your precious possessions while still stabilizing your financial situation considerably. To decide which option to pursue, seek help from a trained legal professional right away.

Seek A Bankruptcy Attorney In Houston, TX

We urge you to take the necessary steps to protect your family from overzealous creditors and the emotional turmoil of debt before it is too late. Please, contact the experienced professionals at Maida Law Firm, P.C., in order to receive a free initial consultation! We are dedicated to helping our clients win a new lease on life as painlessly as possible. Visit our website today to learn more about your bankruptcy options.

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