WHAT IS THE DIFFERENCE BETWEEN A CHAPTER 7 AND A CHAPTER 13?
Chapter 7 Bankruptcy is designed to discharge (get rid of) overwhelming debt, allowing you to use your income for the things that are most important to your family instead of in the service of consumer debt. The kinds of debts that can be discharged in Chapter 7 can include medical debts, credit card debts, payday loan debts, personal loan debts, and other unsecured debts that are typical for American consumers.
A Chapter 7 Bankruptcy allows those in debt to refocus today’s income on paying for current and future needs, instead of being drained each month in high-interest payments to creditors.
Chapter 13 Bankruptcy is an effective way for consumers and small businesses to reorganize (change the terms of) their debt, consolidating overwhelming multiple monthly payments or catching up late payments on a house or car into a single (and financially achievable) monthly expenditure. Chapter 13 can help you avoid foreclosure, repossession, and even IRS levies on your bank accounts.
You may think right now that you know which type of Bankruptcy you “want,” but it takes an experienced Bankruptcy Attorney (like me) to make the determination as to which Chapter of Bankruptcy best fits YOUR personal situation and will be the best tool to solve your specific financial problems. Until we meet in person, here are a few things for you to think about -
CHAPTER 7 Information
CHAPTER 13 Information
Your initial consultation is free. I am proud to serve clients in Marble Falls, Burnet, Llano, Lampasas, and Spicewood, Texas. Please fill out our online form, or give me a call.