What Type of Bankruptcy Is Right for Me?
Being overwhelmed with debt can be extremely stressful both financially and otherwise. You may be considering bankruptcy and wondering whether it is right for you. If so, you will need to understand the various chapters and their respective pros and cons. At The Law Office of Timothy Brown, we can help you decide what type of Bankruptcy is right for you and how to go about filing. You can count on us to support and guide you every step of the way. Contact our offices or give us a call at 815-788-9511 to schedule your free consultation.
The different types of Bankruptcy - Chapter 7 & Chapter 13
Chapter 7 Pros and Cons
- it eliminates most types of unsecured debt, including credit card debt, personal loans, medical bills
- it stops creditor collections, such as wage garnishments, lawsuits, and repossessions
- the process can be completed in only 3 months or so
- you will learn for free how to rebuild your credit with instructions tailored to your situation
- some do not meet the income requirement to qualify
- assets are not always protected
- not all types of debts can be discharged
- the bankruptcy will show on your credit report
Chapter 13 Pros and Cons
- it stops foreclosures, repossessions, lawsuits, other collections
- it allows for repayment of unsecured debt, mortgage arrears, car loan arrears, and old tax debt
- it usually allows for a monthly payment based on your budget
- sometimes allows for discharge of part of the debt
- it allows debtors to keep their assets
- completion of the plan will take 3 to 5 years
- you may have to repay all of the debt
- you may be required to surrender tax refunds and bonuses
- the case will be dismissed if the payments are not made
At The Law Office of Timothy Brown, we provide our clients with the reliable advice they need to make informed choices. We will take the time to learn about your unique debt situation and come up with a customized solution to help you get out of debt.