Are you struggling with overwhelming debt in Harlingen? Bankruptcy could be the solution to help you regain control of your finances. Two main options are available: Chapter 7 and Chapter 13. Each has its benefits, depending on your situation. Let’s break down these two types of bankruptcy to help you make the right choice.
What is Chapter 7 Bankruptcy?
Chapter 7 is known as “liquidation bankruptcy.” It helps eliminate most unsecured debts, such as credit card balances, medical bills, and personal loans. If you qualify for Chapter 7, a bankruptcy trustee will oversee your case. They may sell some of your non-essential assets to pay off your debts. However, many people don’t lose much property because of exemptions.
Chapter 7 is ideal for people who have little or no income and need to clear their debts quickly. Once your bankruptcy is approved, it usually takes about 3 to 6 months to complete. You’ll be debt-free, with the exception of some debts like student loans or alimony.
Benefits of Chapter 7:
- Clears most unsecured debt.
- Quick process.
- Little property loss for many filers.
What is Chapter 13 Bankruptcy?
Chapter 13 is a “reorganization bankruptcy”. It allows you to keep your property and create a payment plan based on what you can afford. You’ll pay back a portion of your debts over a 3 to 5-year period. The plan is based on your income, expenses, and the types of debt you owe.
Chapter 13 is better for people with regular income who want to keep their assets. It’s also a good choice for those who are behind on their mortgage or car payments. Chapter 13 can help you catch up on these payments and avoid foreclosure.
Benefits of Chapter 13:
- Allows you to keep property like your home or car.
- Restructure your debt into affordable monthly payments.
- Helps stop foreclosure or repossession.
Which Bankruptcy is Right for You?
Deciding between Chapter 7 and Chapter 13 depends on your income, assets, and the types of debt you have. Chapter 7 works best for individuals with limited income and few assets. Chapter 13, on the other hand, is ideal for those who want to keep their property and have a steady income to make payments.
A bankruptcy lawyer can guide you through the process and help you determine which option is best for you. They can also explain the potential long-term effects of filing for bankruptcy, such as the impact on your credit.
Get Expert Help with Your Bankruptcy Filing
Choosing the right bankruptcy option for your situation is a big decision. A bankruptcy attorney in Harlingen can provide the guidance you need. The process can be complicated, but with the right support, you can start fresh.
If you’re ready to explore your bankruptcy options, reach out to The Law Office of Joel Gonzalez. Our trusted bankruptcy lawyer in Harlingen can help you understand your choices and get the relief you need.Contact us today!
