Choosing to file through, and eventually traveling through the process of filing for bankruptcy can be a difficult and emotionally draining job. Although with the professional assistance of an experienced bankruptcy attorney one can make the process a bit easier on one’s stress level. The most common filings for bankruptcy are that of Chapter 7 and Chapter 13. There are some differences between the Chapters, although there are also great deal of similarities between the two.
Defining Chapter 7 Bankruptcy:
Chapter 7 bankruptcy is a way in which to liquidate or eliminate debt. This is as opposed to Chapter 11 or 13, which are more forms of reorganizing debt through the United States bankruptcy code.
With Chapter 7 bankruptcy, one is allowed to keep several items of value, possibly including that of clothing, a home, one vehicle and other personal items. This allows for the individual filing for Chapter 7 to continue on with their lives, while also eliminating stressful and collective debt from their past and present.
There are items that cannot be wiped off of an individual’s credit when filing for Chapter 7 bankruptcy. These include, but are not limited to: child support, income taxes/back taxes and often times student loans. Student loans may be waived in some instances, but it is beneficial to consult with a El Paso bankruptcy attorney to see where you stand. A bankruptcy filing under Chapter 7 will remain on an individual’s credit for up to ten years with respects to most cases.
Defining Chapter 13 Bankruptcy:
Unlike that of Chapter 7, Chapter 13 bankruptcy is a process of reconfiguring or reorganizing debt under a bankruptcy court’s supervision. Still a legal process, it is recommended that one consult with an expert bankruptcy lawyer before moving forward with the formal filing.
One major advantage to filing Chapter 13 bankruptcy is that is can often stop a foreclosure on a home in its tracks. This gives an individual and/or family time to decide what is the next best step for them, before they lose their home.
Also staying on an individual’s credit record for up to ten years, an individual who has filed Chapter 13 bankruptcy will have quite a difficult time obtaining credit without supervision of the bankruptcy court system. This is why some individuals see Chapter 7 as a more fitting way in which to regain their financial future.
In both Chapter filings, debtors are regulated by the court system – which means the ceasing of harassing phone calls until the bankruptcy is completed and closed. So overall, if you are receiving harassing phone calls and/or mail filing for bankruptcy may be a valid and stress-easing option.
Jeff Davis is the Owner of the Davis law firm and a highly experienced El Paso bankruptcy attorney. To find out more information about a El Paso bankruptcy lawyer, please visit www.jeffdavislawfirm.com.