If you’ve decided that bankruptcy is the best course of action for you financially, you still may be wondering if you should file Chapter 7 or
Chapter 13 in Suffolk County.
Below are some guidelines to follow as you consider which type of filing is best.
In a nutshell, you should file Chapter 13 in Suffolk County when you believe that you’ll be able to pay your obligations within a court-created payment. This means you won’t have to liquidate a good portion of your assets in order to fulfill your financial obligations to your debtors.
Businesses tend to file Chapter 13 more than individuals. This often is because a company can forecast sales, etc. into the future and see that it will have enough income to pay its bills and other obligations. Individuals, however often find themselves contemplating bankruptcy because they’ve lost a job or have an illness that doesn’t allow them to work. Thus, they have no income with which to pay creditors and so Chapter 13 isn’t an option for them.
But if you can continue to pay your debts, Chapter 13 could be the right choice for you for several reasons:
- Your credit rating isn’t as affected as it is if you file Chapter 7. It still will take a hit, but because you’re paying off your obligations, the credit rating companies will take note of it and give you a higher score.
- Filing Chapter 13 in Suffolk County means your bankruptcy will remain on your credit score for five years instead of the standard seven years.
- Once you’ve filed Chapter 13 bankruptcy and the judge has approved your (re)payment plan, your creditors are required by law to contact you only through a bankruptcy court. No more harassing calls from creditors!
- Another plus: the bankruptcy court can halt any foreclosure proceedings on your property.
Whether you choose to file Chapter 13 or Chapter 7, you’ll still need sound legal advice. You may not have to actually go to court to settle your debts – your attorney may see a way for you to do so without a bankruptcy decree.
Yet it’s virtually impossible to decide if you should file bankruptcy or which type of bankruptcy is best for you without an experienced attorney by your side. Bankruptcy laws change frequently and what may have worked for your neighbor three years ago may not work for you today. In addition, we know of too many bankruptcy filers who had their cases dismissed because they didn’t understand the intricacies involved.
Don’t let that happen to you. Call upon Blutter & Blutter Attorneys at Law today for a complimentary first consultation regarding filing Chapter 13 in Suffolk County. We look forward to serving you.