Deciding between Chapter 7 and chapter 13
A chapter 7 bankruptcy is use to discharge unsecured debts. You have to qualify to be able to file meaning not making too much money or having assets that are a issue. If you qualify it will discharge credit cards medical bills, cars that have been reposed, and even homes that have been foreclosed on. There is no pay back to the creditors.
A chapter 13 is different it is a pay back plan. the main reason people file the chapter 13 is because they are behind on their house or car payments. It can force the mortgage company to accept what ever payments your behind to be paid back over the next five years. The credit cards will receive money through the plan based on how much you can afford to pay not on how much you owe. what ever money the credit cards receive will be a zero percent interest. At the end of five years the plan is done.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
