Should I file for Chapter 7 or Chapter 13 bankruptcy?
It is important to understand the difference between these two types of bankruptcy before filing to ensure you make the best decision for your individual case. In Chapter 7 bankruptcy, the debtor must first qualify according to an income restriction before he or she can have their debts discharged. These debtors may also have to liquidate personal property in order to pay back creditors. This chapter is generally for those in much more serious debt or financial turmoil. On the other hand, Chapter 13 bankruptcy gives debtors the chance to create a repayment plan they can pay off over a period of three to five years. Chapter 13 bankruptcy is easier to qualify for and is typically for those who can still make payments on their debts.
Make sure you speak with a Raleigh bankruptcy attorney at the Bradford Law Offices, PLLC, at 919-758-8879 before making a decision.