Is Filing for Bankruptcy Really the Best Option Available?

List: Posted: 09/08/11

Money can be a fickle thing – when there's enough of it, life is good.  However, if you lose all your money, whether through debt, job loss, or bad financial investments, life can all too quickly turn sour. 

 

When this happens and you find yourself in need of serious debt relief, filing for bankruptcy might seem like the best way to go.  However, it might not be the right choice. 

 

You're probably wondering if it's better to file Chapter 7 or Chapter 13.  First, you need to understand the differences in these bankruptcy types. 


Chapter 7 Bankruptcy

 

Chapter 7 is total liquidation of your assets.  That means that anything you own (whether of value of not) has to be sold off to pay your creditors, leaving you with no possessions or money afterward.  However, this type of bankruptcy can be good, as it can eliminate most unsecured debt, is very fast and your creditors cannot bug you after the automatic stay goes into effect.


Chapter 13 Bankruptcy

 

Chapter 13 is a bit different.  This type of bankruptcy is essentially an adjustment of debts for a person with a regular income.  This is the best option if you have a home that you want to keep and if you have regular income.  You will find that this type of bankruptcy allows you to keep most of your property and spread out your debt payments.  You have from three to five years to pay off your creditors, and you will make only a single monthly payment for all of them.

 

Bankruptcy is suited for different types of debtors.  When you find yourself in need of debt relief, speak with an attorney or credit professional to help you determine the best course of action for your situation.

Bankruptcy Attorneys

  • 45575 Shepard Dr #201
  • Sterling, VA 20164
  • (703) 421-7111

    Pesner Kawamoto Conway Law offers bankruptcy attorneys specializing in chapter 7 bankruptcy, chapter 11 bankruptcy and chapter 13 bankruptcy in Leesburg, V

    • 75 Lawson Rd
    • Leesburg, VA 20175
    • (703) 821-2793
    • 297 Herndon Pkwy #104
    • Herndon, VA 20170
    • (703) 467-9199

      Milanes Law is a law firm that focuses on a Federal law practice of Bankruptcy and Criminal Defense.

      • 1831 Wiehle Ave Ste 105
      • RESTON, VA 20190
      • (703) 880-4881

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