While a Chapter 7 Bankruptcy and Chapter 13 Bankruptcy both offer benefits to the individual consumer, each type of bankruptcy provides the individual consumer with differing types of benefits. While some of the benefits of one type of bankruptcy verses another type are different, they both provide the consumer with the opportunity for a fresh start and new lease on life. Choosing between which bankruptcy best suits your situation will depend on your long term and short term goals.

The primary benefit of a Chapter 13 Bankruptcy filing is that it can prevent foreclosure of a house or car repossession. A Chapter 13 Bankruptcy allows the debtor to stay collection action by both secured and unsecured creditors by creating a repayment plan. The duration of the bankruptcy repayment plans range from 36 to 60 months to pay back your creditors the outstanding delinquency at time you file your Chapter 13 Bankruptcy. The bankruptcy plan allows the debtor to spread out payments to get caught up on the property over time and prevents the debtor from having to come up with all the money immediately. Along with the principle benefit of stopping a home foreclosure or the repossession of other types of secured collateral, like a car, a Chapter 13 Bankruptcy can also help eliminate most of your unsecured debt. If you complete a Chapter 13 Bankruptcy repayment plan, you will emerge debt free and current on your house and car!

The other main benefit of a Chapter 13 Bankruptcy is the 100% protection of your valuable assets from seizure by your creditors. Although Chapter 7 Bankruptcy provides for some protection of your assets through state created “exemptions,” not all of your property may be completely shielded from seizure. If you own a home or car that that is paid in full or has significant equity, a Chapter 13 Bankruptcy will allow you to reap the benefits of the discharge, the elimination of at least some of your debt, and allow you to keep your hard earned assets!

By contrast, the primary benefit of a Chapter 7 Bankruptcy is the elimination of most or all your unsecured debt. Unsecured debt is debt that is not secured, or attached, to any of property. The most common examples of unsecured debt that will be eliminated in a Chapter 7 Bankruptcy are credit cards, medical bills, payday loans, utility bills and personal signature loans. All of those types of debt are eliminated. In other words, upon successfully completing of a Chapter 7 Bankruptcy you will not owe your creditors anything for most types of unsecured debts. By contrast, in a Chapter 13 Bankruptcy, you must usually pay back at least some of your unsecured creditors. While there are some types of debt that cannot be eliminated in any bankruptcy, the principle benefit of a Chapter 7 Bankruptcy is the elimination of most type of unsecured debt.

Another benefit of Chapter 7 Bankruptcy is that you can obtain relief from your debts in a shorter period of time. The typical Chapter 7 Bankruptcy case lasts only three to four months from the date you file your Chapter 7 Bankruptcy case with the court until you receive your discharge. A Chapter 13 Bankruptcy is a repayment plan that lasts 36 to 60 months. A Chapter 7 Bankruptcy can help you become debt free in only three to four months!

While the end results of each type of Bankruptcy are similar, some the benefits from each type of Bankruptcy can be very different. In order to determine which type of Bankruptcy you should file or which type of bankruptcy best suits your needs and long term goals you need to seek advice from us immediately.  Make an appointment today.

Today almost all people have caller ID and when the phone rings and you do not know the phone number you just do not answer the phone because you are assuming it is one of your creditors looking for you to make a payment.  Once you leave our office you must answer all your phone calls and tell them you have hired a bankruptcy attorney and give them our name and  phone number, under the law they can not call you anymore or any one else other than us regarding repayment of any of your debts.

You cannot file another bankruptcy unless at least 8 years have passed from a previous filling.

• Alimony and child support
• Back taxes under 3 years old and student loans
• Recently made purchases for substantial amounts
• Property executed contracts involving titles or liens