So, you’ve decided that you’ve had enough of the constant phone calls from bill collectors and the never-ending stress of debt. You would like to file for bankruptcy but you’re not sure which chapter would be right for you. Here are a couple of things to consider.
What are your assets? Bankruptcy laws allow for some exemptions on the home that is your primary residence, your car, and household goods and furnishings. Additionally, retirement income is also exempt from bankruptcy. Even with Chapter 7 bankruptcy, in which assets are converted to cash by a trustee and then the cash is distributed to creditors, you won’t lose everything you own. That said, Chapter 7 is generally most effective for those who have few assets but significant debt.
What is your income? Could you pay off your debt over time while still being able to meet your monthly expenses? Do you have assets such as a home and car that you want to keep? Would you like to stop foreclosure or refinance your car? If you answered yes, then look closely at Chapter 13. Known as “reorganization bankruptcy”, Chapter 13 allows you to create a three to five year debt repayment plan that the court approves.
There are many more factors to consider when filing for bankruptcy. Dayton, Ohio Bankruptcy Attorney Chris Wesner would like to help you understand more fully the difference in the chapters so that you can make the choice that is best for you and your unique situation. For more information, contact us.