Understanding The Advantages And Disadvantages Of Both Chapter 7 And Chapter 13
Whether you can file for Chapter 7 or Chapter 13 bankruptcy depends entirely on your income level. Individuals and families living in Indiana who fall below a certain threshold are eligible to wipe their financial slates clean. For those with higher incomes, reorganization and repayment is the next available option. But how will either approach impact you and your unique situation?
Here at Scott & Aplin LLC, our dedicated bankruptcy attorney will work with you to help you understand how each chapter of bankruptcy may affect you and where to start when filing for relief.
When To Choose Chapter 7
While clearing your debt can sound like a dream come true after years of struggling financially, filing for Chapter 7 is not without a price. In order to get the fresh start that you need, you must first liquidate your assets to pay off your debt. Although this does not always include your house or your car, both items are still at risk. With our help however, you may be able to protect these key assets through the use of state-provided exemptions.
Why File Under Chapter 13
Those who do not qualify for Chapter 7 or who do not wish to risk the loss of important assets can benefit from Chapter 13. Through this chapter of the bankruptcy code, you must continue to pay off your debts, but you can do so with an affordable payment plan. Because this chapter requires that you stay current on your loans to prevent foreclosure or repossession, it is best suited for those with a regular income.
Talk To Us First
Don’t assume which option is right for you and your needs without first consulting an attorney. Discuss the specific details of your case with us before you decide.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.