The 2008 economic collapse has struck hard in many of the families and businesses out there and although the economy is on the rise at the moment, the effects of the crisis can still be felt in a lot of the cases out there. Left without jobs, unable to find new jobs, left with very high prices and low incomes, unable to make payments when they are due – this is how too many of the Americans out there have found themselves in the last few years.
Many have chosen to file for bankruptcy and if you are also considering the option, then you should think things through and you should make the right choice for you and your family. One of the most important things you will have to think of is what type of bankruptcy you should file for. Chapter 7 and Chapter 13 are among the most common options for individuals, and although both of them can be beneficial, they do show differences as well.
For instance, one of the main things that are different in each of the cases is related to the fact that Chapter 7 can erase much of your debt, while Chapter 13 will be just a reorganization of your debt where a court will make a repayment plan for 3-5 years.
Even more, if you have filed for Chapter 7 bankruptcy in the last 6 years, you can only file for Chapter 13 at the moment. However, if you have filed for Chapter 13, you can still file for Chapter 7 (which is one of the reasons for which some of the people choose 13 first over 7, so that they can still leave their options as open as possible).
Another thing that is different in these cases is related to the fact that under Chapter 7 a judge will be able to tell if certain things on your property can be taken away. Although there are things that can be exempt, some of the people out there do not want to give up on those that aren’t – so they file for 13 instead of 7. Even more, do bear in mind the fact that you have to have a certain income to qualify for Chapter 7, while this is not true in the case of Chapter 13.
To analyze your situation better and to make sure you are doing the right thing, the very best move you can make right now is to talk to a dallas bankruptcy attorney. He/she will be able to advise you accordingly and to help you throughout the entire process as well.