What Are The Benefits Of Bankruptcy
When filing for bankruptcy you first need to decide what type of bankruptcy is right for you. This most likely means that you will have to choose between filing for Chapter 7 and Chapter 13 bankruptcy. In order to understand the benefits of bankruptcy it’s important to take a look at the benefits that each of these two types of bankruptcy offer.
Benefits of Chapter 7
Unlike Chapter 13 bankruptcy, Chapter 7 can allow many of your debts to be “discharged,” or eliminated altogether. While this form of bankruptcy is known as “liquidation bankruptcy,” it is a faulty assumption that all filers will be required to sell off their assets to pay back their debts. In most cases, filers can have their debts discharged without having to sell much, if any, of their property. This option is ideal for individuals who want a quick way to regain financial independence.
Benefits of Chapter 13
Chapter 13 differs from Chapter 7 in a number of ways. First off, Chapter 13 allows debtors to create a repayment plan. Typically, a repayment plan allows debtors to propose a three to five year plan that will detail how they will pay back all their debt. While this is not as quick of a process as Chapter 7 bankruptcy, it provides debtors with time to relieve their financial stress. This is ideal for those who have a steady income and want to repay their debts over time, and usually has less of an effect on one’s credit score than does Chapter 7.
Deciding what type of bankruptcy to file for can be a hard choice to make. That is why it’s important that you know all of your legal options. For more information on the benefits of bankruptcy, contact the experienced Lafayette bankruptcy lawyers at the Law Office of Adam G. Young, PLC, at 337- 261-8800.