A comprehensive comparison of Chapter 13 and Chapter 7 bankruptcy
On behalf of Furr & Cohen, P.A. posted in chapter 7 on Monday, June 20, 2016.
There comes a day when we have to relinquish the hope that the MegaMillion is going to come up in our favor, or an estate attorney will call with a windfall inheritance resulting from an unknown great-uncle’s passing. There comes a day when there isn’t any hope to do the right thing and pay off, and subsequently silence, the creditors in one fell swoop, and instead we have to make some tough decisions that change everything.
The good news is, while the decisions aren’t easy, once a plan is in place, you are likely to feel the weight of a great burden being lifted. How do you decide which bankruptcy to file for, and what will be the most productive and less intrusive plan you can work with?
The two primary options for personal bankruptcy are Chapter 13 and Chapter 7. Chapter 7 offers debt absolution of qualifying debts with the forfeiture of some of your personal property. There will not be a chance to repay creditors by utilizing a payment plan. Chapter 13 dictates either a 3-year or a 5-year court-approved period in which to faithfully repay your debts, and as long as you make timely payments, creditors must leave you alone.
While it may seem like a challenge to determine which filing is right for you, there is actually qualifications based on income and other factors that will do most of the work for you. A Florida bankruptcy attorney will be able to counsel you through all of your options and help you make the decision that is right for you.