The Top 3 Reasons Why Chapter 13 Bankruptcy May Be a Better Option than Chapter 7<\/p>\n

When considering personal bankruptcy, a surprising number of people don\u2019t realize that there\u2019s an alternative to Chapter 7. In fact, many people don\u2019t really understand what filing Chapter 7 means. I hope that this post will help enlighten readers and help explain the differences, as well as why Chapter 13\u00a0may<\/em>\u00a0provide a better debt relief solution for some individuals.<\/p>\n

First, let\u2019s explore what filing Chapter 7 means and what it does, if your petition is granted. When a personal bankruptcy of this type is granted, it means that the individual who has filed is completely incapable of paying his or her debts, in other words, \u201cbankrupt\u201d. In this case, the two most significant things that happen are:<\/p>\n

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1. The individual stops making payments on all dis-chargeable debts and those debts are cancelled by the court.<\/li>\n
2. The record of the bankruptcy is added to the individual\u2019s credit report and remains there for 10 years.<\/li>\n<\/ol>\n

   That\u2019s a very simplified version, of course. There are other things that may occur, such as liquidation of certain assets to compensate creditors, but the 2 points above are the final outcome and have the greatest effect on the person\u2019s status. The effects will be both positive and negative, so it\u2019s crucial to understand exactly what you\u2019re getting into before you file.<\/p>\n

   Chapter 13 offers a completely different approach and outcome. In a nutshell, this type of filing allows the court to construct a new payment plan for the individual\u2019s debts, after which the person filing is still responsible for payment of the debts. There are requirements that must be met and a complete statement of finances is imperative for the court to assess whether the person is eligible for this protection. If so, there are 3 distinct advantages to choosing this option:<\/p>\n

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   1. The debts are not discharged; the creditors simply agree to a new payment plan, often with a lower total payoff.<\/li>\n
   2. Although it shows on an individual\u2019s credit report, a Chapter 13 indicates to those who check the person\u2019s credit that he or she is paying the debts.<\/li>\n
   3. This type of bankruptcy remains on a credit report for only 7 years.<\/li>\n
   4. So, is this \u201cthe answer\u201d for any person that needs relief from overwhelming debt? Absolutely not! It\u2019s only one of many options and even if you qualify, it may not be the\u00a0best<\/em>\u00a0option. Your attorney must be prepared to examine all the alternatives and work with you to decide which plan best suits your personal financial situation and provides the most positive outcome.<\/li>\n<\/ol>\n

      To explore this and other debt relief possibilities,\u00a0 contact accomplished\u00a0SAN DIEGO BANKRUPTCY LAWYER<\/a>\u00a0Jeff Larkin. To seek advice from\u00a0CARLSBAD BANKRUPTCY ATTORNEY<\/a>\u00a0Jeffrey Larkin, call 877.25.NEW.HOPE for a free consultation today or visit his\u00a0BANKRUPTCY ATTORNEY IN CARLSBAD CA<\/a>\u00a0Google+ Local page.<\/span><\/p>\n

      For more details, Please visit our website: \u00a0https:\/\/larkinfirm.com<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

      The Top 3 Reasons Why Chapter 13 Bankruptcy May Be a Better Option than Chapter 7 When considering personal bankruptcy, a surprising number of people don\u2019t realize that there\u2019s an alternative to Chapter 7. In fact, many people don\u2019t really understand what filing Chapter 7 means. I hope that this post will help enlighten readers…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[23,28,24,29,30,26],"class_list":["post-3645","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-bankruptcy","tag-bankruptcy-lawyer","tag-carlsbad","tag-debt-lawyer","tag-debt-relief","tag-san-diego"],"yoast_head":"\n