Consumer cases fall into two classifications — Chapter 7 bankruptcy and Chapter 13 bankruptcy. Understanding the difference between the two types of bankruptcies available to you can help you determine which one is best for you financially. Additionally, there are several types of debt negotiation options available to you as a consumer, before you make a decision to file for bankruptcy. Contacting an experienced bankruptcy attorney can help you as you move forward to make the best financial decision for your unique circumstance.
Chapter 7 bankruptcy requires you to liquidate most assets in order to repay creditors completely. This process is quicker than a Chapter 13 bankruptcy and allows a debtor to keep any wages and property after the bankruptcy is dismissed. However, under a Chapter 7 bankruptcy, your debts must be paid, your house can be foreclosed upon after the bankruptcy is discharged, and other debts such as mortgage liens are still required to be paid.
Conversely, a Chapter 13 bankruptcy allows you to keep all of your property. You are afforded an opportunity to create a repayment plan to your creditors that will allow you to repay what you owe, and extend the time you have to pay what you owe to your creditors. This reorganization of a debtor’s assets and debts affords him or her the opportunity to fulfill financial obligations and get a fresh start.
There are four alternatives to bankruptcy that involve debt negotiation for the consumer. If possible, these alternatives can save a debtor from either a Chapter 7 or Chapter 13 bankruptcy.
These four alternatives exist as options to avoid bankruptcy, which can stay on your credit for up to seven years. Contacting an experienced bankruptcy attorney can help you determine which debt negotiation is right for your specific financial case.
If you find yourself in the financial situation where your income is insufficient to pay your debts and your creditors, you have options. Before you file for Chapter 7 or Chapter 13 bankruptcy, consider the other debt negotiation options you have. Bankruptcy laws are ever-changing, complex, and challenging to navigate without experience. Determining which debt negotiation tactics would be best in your financial situation including examining factors such as expenses, income, debt, and assets. Serious consideration should be given when deciding how to handle your debt negotiation. Contact the bankruptcy attorneys at Law Offices of Jay Silverberg at 212-687-7000 or online for a free consultation today.
At Law Offices of Jay Silverberg our team will analyze your case and determine whether bankruptcy is the right option for you. If yes, then we will handle every aspect of your legal process, start to finish.
Which will help you make the right choice, and get out of debt smoothly, and fast.