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Chapter 7 vs Chapter 13

Differences Between Chapter 7 and Chapter 13

Chapter 7 vs Chapter 13 Bankruptcy: Similarities

Declaring bankruptcy may seem intimidating, but it can be a freeing process that allows you to return to the life you once lived before debt encroached in on your family. Not only does bankruptcy provide relief from months or years of overwhelming financial stress, it will also put an end to creditor harassment. Once you file, they will legally not be allowed to contact you regarding your debt. There are viable options for individuals and families in all stages of life, so do not assume that you will not qualify. Some people may qualify for Chapter 7, while others may qualify for Chapter 13, leading many individuals to wonder what is the difference between Chapter 7 vs Chapter 13.

At Cherney Law Firm LLC, I have experience in counsel and representation for both Chapter 7 and Chapter 13 bankruptcy and will assist you in choosing the option that is best for you. The first step in determining which type to choose is completing a means test. This will compare your income against your debts and see if you are eligible to have some or all of your debt discharged. It is vital that before you even begin this process that you understand the differences.

Characteristics of Chapter 7 vs Chapter 13 Bankruptcy: Differences

The basic aspects of Chapter 7 are as follows:

  • Means test results show an individual’s monthly income to be below the state average
  • Automatic stay laws stop harassing creditors after filing
  • Sale of certain property applied toward debts (bankruptcy exemptions excluded)
  • Remaining balance is discharged

The basic aspects of Chapter 13 are as follows:

  • Means test results show an individual’s monthly income to be sufficient for a payment plan
  • Automatic stay laws stop harassing creditors after filing
  • A payment plan is set up for the next three to five years
  • After the term of repayment, any remaining balance is discharged

In order to determine whether or not bankruptcy is right for you, be sure to speak with a qualified Marietta bankruptcy lawyer right away. Get in touch with my firm today for a free consultation so that I can discuss with you all of your choices, including possible alternatives to bankruptcy. Only a bankruptcy attorney can help to ensure that you correctly complete a means test and pursue the most beneficial form of debt relief for your situation.

Dealing with debt? What is your next step?

To learn how a legal representative can assist you in filing for bankruptcy, contact a passionate and understanding Marietta bankruptcy lawyer at my firm today. Having handled over 2,000 individual bankruptcy cases since 2006, I am well-versed in both Chapter 7 and Chapter 13 cases. Clients can rest easier when placing their case in my hands because I have had success to back up my reputation in the legal community. Call Cherney Law Firm LLC today for a free initial consultation to find out how my firm can help you get back on track financially speaking.