Chapter 7 Vs. Chapter 13

Benefits of Chapter 7 and Chapter 13

There are several chapters in the U.S. bankruptcy code, but most individuals will file for either Chapter 7 or Chapter 13. Both of these are designed to primarily serve individuals, rather than business or other organizations, and they each provide their own unique benefits for those with specific financial needs. In a Chapter 7 bankruptcy, a debtor will have all non-exempt property liquidated by a bankruptcy trustee, with the proceeds being used to pay back creditors. This form of bankruptcy features the following benefits:

• Debt discharge occurs in a relatively short period of time (approximately 3 months)
• In many cases, debtors are able to exempt all property in a Chapter 7 filing, which prevents the loss of any assets during the bankruptcy process
• Most debts are eliminated without the debtor having to pay them back

In a Chapter 13 bankruptcy, a debtor will repay some or all of their debts over a period of three to five years, in a payment plan that is approved by a bankruptcy court. Chapter 13 features these benefits:

• A debtor pays back debts in a manner similar to debt consolidation, but without having to deal with constant collection actions or harassment from creditors
• Certain debts that are nondischargeable in a Chapter 7 bankruptcy may be eligible for discharge in Chapter 13
• Filing for Chapter 13 can protect a person from home foreclosure, as the person is allowed to pay past due mortgage payments through the payment plan
• Filing for Chapter 13 can protect those who have co-signed on loans for the debtor, such as those for vehicles

If you are considering bankruptcy, a Long Island bankruptcy lawyer can help you in deciding between filing for Chapter 7 and Chapter 13.

Long Island Bankruptcy Lawyer

Blutter and Blutter provides zealous advocacy for those who are struggling under the weight of substantial debt. The firm has helped countless individuals through their bankruptcy proceedings, and they are available to assist you in deciding on the correct bankruptcy method for your financial situation. Whether you decide on Chapter 7 or Chapter 13, they will provide you with dedicated one on one service that is designed to result in a successful resolution to your bankruptcy case.

Contact a Long Island bankruptcy attorney who can review your financial situation and determine the most beneficial bankruptcy method for you.