Many of the potential clients I receive calls from do not understand the differences between a Chapter 7 and Chapter 13 bankruptcy, nor which one would benefit them more. I would say in at least 95% of cases, a Chapter 7 is more beneficial to an individual debtor. A Chapter 7 bankruptcy offers a complete discharge of all debts that are allowed to be included by the courts, meaning, the debtor will no longer be liable to any of the creditors in the cases. In a Chapter 13 bankruptcy, a debtor agrees to repay as much of the debts as they can over a few years, at the end of which, any outstanding balance will be discharged. Many people wonder why anyone would ever file a Chapter 13 bankruptcy, given the greater benefits of a Chapter 7, however, in some circumstances, filing a Chapter 13 may be the debtor's only choice. In order to qualify for a Chapter 7 bankruptcy, your annual income needs to be under a certain level, otherwise, you cannot file. In addition, debtors with assets above the exemtpion limit, or who are behind on their house payments, but wish to catch up, can use a Chapter 13 to retain possession of their house and bring their mortgage current. Finally, some debts can be included in a Chapter 13 bankruptcy that cannot be included in a Chapter 7. Contact our law office today to learn if you qualify for Chapter 7 bankruptcy and which option would serve you properly.
WCZ
http://www.westmontattorneys.com/
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