Chapter 7 vs. Chapter 13 Bankruptcy
While many Americans have some amount of debt, some find themselves with a burdensome amount that is difficult or impossible to pay back. Fortunately, in the United States, individuals with unmanageable debt obligations can pursue bankruptcy protection to provide them with financial assistance and help them get out from under the burden of debt. For individuals, two of the most popular forms of bankruptcy available are Chapter 7 and Chapter 13 bankruptcy.
If you or someone you know has overwhelming financial obligations, an experienced legal advisor can help you understand which form of bankruptcy may be right for you. Contact a Houston bankruptcy lawyer at the Russell Van Beustring P.C., today at 713-973-6650 to speak with a qualified member of our legal team about the details of your situation and learn more about your rights and options under the law.
Differences between Chapter 7 and Chapter 13 Bankruptcy
Depending on the nature of a person’s financial situation and their own personal preferences, there are several benefits to each form of bankruptcy. These are as follows:
- Chapter 7 – under this form of bankruptcy, an individual will have all of their qualifying debts completely discharged, with repayment coming from the liquidation of certain assets (although many people are allowed to keep important items, such as their home, car, and objects of personal significance).
- Chapter 13 – under this form of bankruptcy, an individual will keep all of their assets while repaying their debts under a repayment plan that lasts anywhere from 3 to 5 years and usually involves paying less than what is fully owed.
Depending on your financial situation, one of these plans is likely more appropriate for you and will provide you with the debt relief you need.
If you or someone you know is struggling to manage your debts, we can most likely help. Contact a bankruptcy attorney of the Russell Van Beustring P.C., today at 713-973-6650 to discuss your case with an experienced legal professional and get started working towards financial freedom.