If the burden of overwhelming debt is making your life miserable, bankruptcy may be a viable option. Choosing to file for bankruptcy is just the first step; now, you need to meet with a bankruptcy lawyer to determine whether chapter 7 or chapter 13 is a better fit.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy grants you freedom from most types of debt, but at the cost of a destroyed credit score. However, for those with no hope of conquering their rapidly mounting debt, it is often the best solution. The eligibility requirements for chapter 7 are strict; interested parties must successfully complete a means test in order to qualify.
If you are unsure as to whether chapter 7 is an advisable approach for you current financial situation, get in touch with a trustworthy attorney such as Brian F. Lee. Equipped with a thorough understanding of the implications of chapter 7, Brian Lee provides the in-depth legal guidance clients need to make the right decision.
Chapter 13 Bankruptcy
A common alternative to chapter 7 bankruptcy, chapter 13 is sometimes referred to as reorganization or the wage earner’s plan. With this this type of bankruptcy, the goal is not to wipe out all debt, but rather, to make it easier to pay off debt over time. Typically, this repayment occurs in installments lasting anywhere from three to five years. One of the biggest advantages of chapter 13 bankruptcy is that it allows individuals to save their homes from foreclosure.
As with chapter 7, chapter 13 can have a negative impact on credit scores. However, many lenders look more favorably upon chapter 13. The biggest downside to declaring chapter 13 bankruptcy is the need to continue making payments. For those already struggling financially, this can be a huge burden. Thus, those with limited property and income are typically better suited to chapter 7.
Brian F. Lee: Your Go-To Resource For Bankruptcy-Based Legal Counsel
If you believe that you can achieve a fresh start with chapter 7 or chapter 13 bankruptcy, it is in your best interest to seek legal counsel from Brian F. Lee. A knowledgeable bankruptcy attorney, Brian Lee can help you determine your current eligibility for various types of bankruptcy. He can also help you determine whether chapter 7 or 13 will better suit your current situation. No matter which type of bankruptcy you choose, you can rest assured, knowing that Brian Lee will guide you through every step of the bankruptcy process.