People often wrongly assume that bankruptcy is meant for the rich and elite. While there is no denying that bankruptcy should be your final option when you have failed to pay your debts, it is not the end of the road. When your financial situation is such that you have acquired more debts than you can pay off, there are two options – Chapter 7 and Chapter 13 bankruptcy. If you are in Las Vegas, consider talking to top firms like Vohwinkel Law: Las Vegas Bankruptcy Attorney. A skilled and experienced bankruptcy lawyer will offer insight on the best possible ways to handle your current financial situation. They will also explain the difference between two options.
The basics of Chapter 13 bankruptcy
If you decide to file for Chapter 13 bankruptcy, you will have a repayment plan extending in years. You are required to repay some of your existing debts over a period of time and through a payment schedule that’s feasible for you. If you own property/business that is not covered by exemptions, you can consider Chapter 13 bankruptcy, where scheduled payments are to be made over 3 to 5 years. When you are facing foreclosure, you can keep the house, as long as you are adhering and making scheduled payments as per the Chapter 13 plan.
The basics of Chapter 7 bankruptcy
This is a simpler option of the two. When you file for Chapter 7 bankruptcy, you get a fresh start, where all your previous debts will be discharged. Whatever you earn in the future is for you to keep. Also, Chapter 7 bankruptcy can be completed within months, and if you think of the costs, this will cost a lot less. However, unlike Chapter 13, where you can save your non-exempt property or assets, you will lose everything when you file for Chapter 7 bankruptcy.
Which option should you consider?
Meet a reliable bankruptcy attorney to know more. There is no one option that works for everyone, and it is largely dependent on the financial situation of the person. Sometimes, Chapter 7 bankruptcy may work better, especially when you don’t have a lot of assets at stake. Chapter 13 could be a great choice when you have enough assets and don’t want to let go of everything.
No matter the circumstances or what your attorney recommends, bankruptcy definitely allows you to reconsider your financial status.