If you’re unsure if you should file Chapter 7 or Chapter 13 bankruptcy, contact our law office to discuss your options. Choosing whether to declare chapter 7 or chapter 13 bankruptcy can be a big question. For most people who have never been through the process, bankruptcy can be a bit of a mystery. One of the biggest areas of confusion for people involves the difference between Chapter 7 vs. Chapter 13 bankruptcy.
This distinction can be confusing, and it might seem like legal minutiae. However, it is a critical distinction that could have a significant impact on your debt-relief options. Make sure you work with a lawyer with experience who understands bankruptcy laws. At The Law Offices of Ronald I. Chorches, we can advise you of your rights and options.
The Primary Differences Between Chapter 7 and Chapter 13 Bankruptcy
Both forms of bankruptcy are focused on helping debtors find relief. Furthermore, both involve an automatic stay from collections efforts. Nevertheless, there are some significant differences between the two, including:
- What they can do with your mortgage debt: While a number of solutions can be found with both types of bankruptcy, Chapter 7 is a better tool for removing judgment liens and other leans, while Chapter 13 is a great tool for stripping off second mortgages.
- The form of relief they take: While Chapter 7 is most often used for elimination of unwanted debt, Chapter 13 provides debt repayment solutions that leave filers with manageable payment plans that allow them to retain their valuable assets.
- The time it takes to complete the process: Chapter 7 takes a few months to complete the process, generally, and once the process is completed, unwanted debts are eliminated. In contrast, people filing for Chapter 13 enter into a three-year or five-year repayment plan.
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These are just a few of the differences between these chapter of bankruptcy. There are other important distinctions, as well as alternatives to bankruptcy that we can discuss as we explore the best debt relief options available to you.
With more than 20 years of legal experience representing Connecticut clients, Hartford bankruptcy attorney Ronald I. Chorches can help you understand your options. He can help you through a debt relief process that will be best for your needs.
Get In Touch With Us
If you’re still unsure as to which chapter of bankruptcy you should file, don’t wait another moment. Contact our law office as soon as possible to discuss your options by calling 860-563-3955 or sending us an email from our consultation page.