Making the decision to file for bankruptcy is not easy. It is a process that allows you to deal with your debt in an organized manner without the pressure and constant contact from debt collectors. However, deciding you need to move forward with this process is only the first step. You will also have to determine which chapter is best for your individual situation.
The two most popular options are Chapter 7 and Chapter 13. The right choice depends on the details of your individual situation, such as the type of debt you have and your income. If you believe that this is the prudent course of action for you, it is helpful to first determine which path makes sense for your financial future. With both Chapter 7 and Chapter 13, you will be able to deal with certain types of debt once and for all.
Differences and benefits
Before you file for bankruptcy, it is in your interests to learn about the differences between these two options and the benefits they offer. For Chapter 13, consider the following:
- This is an option for those not eligible for Chapter 7 bankruptcy.
- It is beneficial for those hoping to save their homes from foreclosure.
- It allows the applicant to keep his or her non-exempt property.
- It can take three to five years to complete the repayment plan.
Chapter 13 may not be right for you for a variety of reasons. You may need to consider Chapter 7, and it may be helpful to understand the following:
- It is ideal for those who have a large amount of unsecured debt.
- It only takes a few months to complete Chapter 7 bankruptcy.
- It offers quick relief from creditors and debt collectors.
- Exemptions allow applicants to keep important personal property.
The best way to determine which chapter of consumer bankruptcy is right for you is to discuss your case with an experienced Louisiana attorney.
Before you file
Filing for bankruptcy is a significant financial decision that will impact your life for years to come. You do not have to make this choice or take one step alone. With the guidance of a knowledgeable legal ally, you can make smart decisions that will prove beneficial for your long-term interests. One of these decisions is determining whether Chapter 7 or Chapter 13 is right for you.