When you are dealing with mounting debts, financial pressure, and all of the stress that comes with not being able to make ends meet, bankruptcy sounds like the only way to get a fresh start. While filing for bankruptcy, chapter 13 or chapter 7, is certainly a step toward starting over, is it truly a fresh start?
Filing for Bankruptcy –Chapter 13
What is chapter 13 bankruptcy and how can it help you start fresh?
Filing for bankruptcy, under chapter 13, enables you to pay back debts without liquidating your property and assets. Under this type of bankruptcy, chapter 13 legislation requires you to commit to a repayment plan based on your ability to make a monthly payment. That payment could last last up to five years. A bankruptcy lawyer in Surprise, AZ will help you come up with a plan that meets legislative requirements.
What is chapter 13 bankruptcy going to do for you? At the end of your repayment plan, debts are discharged, so anything you have not paid will be dealt with, aside from debts that cannot legally be removed.
Filing for bankruptcy as chapter 13 legislates will ultimately be a fresh start for you, but it will take time.
You must complete the entirety of the repayment plan before you can start over without debt. You may also pay more fees to a bankruptcy lawyer in Surprise, AZ than you would by filing chapter 7 bankruptcy – however, this type of bankruptcy may prove better for your financial record.
Filing for Bankruptcy –Chapter 13 vs. Chapter 7
The other common type of bankruptcy used to begin again is chapter 7. A chapter 7 bankruptcy involves seizure and sale of property in order to repay debtors. After that, debts are discharged.
This process happens faster than filing bankruptcy via chapter 13, but claimants must meet certain requirements. A bankruptcy lawyer in Surprise, AZ can assist you in determining if this type of bankruptcy is right for you.
For many people, one type of bankruptcy or another is the only option. The best way to get a fresh start after filing for bankruptcy is to work with a bankruptcy lawyer in Surprise, AZ to ensure you do not end up in the same situation in the future. You must also rebuild your credit, something a bankruptcy lawyer in Surprise, AZ can advise you on—in order to make the most impact on your financial record.
This blog is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this blog. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.