On behalf of Trenton Grand of Grand Law Firm on Wednesday, October 24, 2018.
Filing for bankruptcy can prove beneficial if you find that debt has overwhelmed you. But how do you know which type to file for: Chapter 7 or Chapter 13?
If you are considering filing for bankruptcy, you are not alone. According to the United States Courts bankruptcy filings, Louisiana has one of the highest rates of bankruptcy. What are the benefits of Chapter 7 and Chapter 13?
Chapter 7 Benefits
Chapter 7 bankruptcy is arguably the most common form of bankruptcy. This type of bankruptcy is a popular choice for individuals who may not have extensive income, which one can determine by taking a means test. Chapter 7 also has the power to liquidate and wipe away one’s debt. When one files, debt such as credit card debt and medical bills may go away.
Chapter 13 Benefits
Chapter 13 bankruptcy may be a better choice for people who have too high of an income to file for Chapter 7. This type of bankruptcy allows for the filer to repay their debt over a period of time with the help of a payment plan. This type of plan is beneficial, as in many cases the filer is allowed to keep their home and car during the process.
Both chapters have significant benefits for those who file. If you are struggling with paying your credit card debt as well as other bills, filing for bankruptcy, whether it be Chapter 7 or Chapter 13, might be the right choice.