The vast majority of bankruptcy filings are either Chapter 7 or Chapter 13. They are quite different and we will help you decide which the best chapter for you. Below is a brief description of the two types of consumer bankruptcy.
Chapter 7
Chapter 7 is both less expensive and faster than a Chapter 13, if you qualify for Chapter 7 then your non-protected assets will be liquated to pay off your non-exempt debts and within a few months the bankruptcy will be complete and majority of your debts will be cleared away so that you can start fresh.
In Texas most of your assets will be protected for instance your home, vehicle, guns, and in most cases all of your personal property will not be effected. In most cases this would mean that the money you have in the bank at the time of filing will be divided amongst all of your credit cards, medical bills, and other unsecured debts.
There are certain obligations that you will not be able to discharge in bankruptcy such as child support obligations, IRS tax debts, and student loans but virtually everything else can be dealt with in the bankruptcy process. Chapter 7 is best when your primary issue your unsecured debts.
Chapter 13
Chapter 13 bankruptcy is more costly and time consuming than Chapter 7 but if your main aim is to keep your home from foreclosure than it is probably the way to go. In Chapter 13 all of your debts (including back house and car payments) will pooled together and put into a three to five year repayment plan without accruing additional interest or fees.
You can get all of your debts into on manageable monthly payment and keep your home from going into foreclosure. As with Chapter 7, child support debt, IRS tax debt, student loan debt and certain other debts may be included in bankruptcy.
Call us or fill out our evaluation today to see which chapter is best for your specific situation.
