Should I File Chapter 7 or Chapter 13 bankruptcy?
A range of factors in your life can lead to debt that you cannot repay. If you have come to the point at which it is impossible to service your monthly bills, then you should consider declaring bankruptcy. Doing so gives you legal protection against your creditors. It can give you a fresh start in your financial life or give you the reprieve you need to reorganize your payments.
The kind of bankruptcy you declare depends on the specific circumstances you face. The first thing you should do is hire a Brighton Beach bankruptcy law firm to represent you. The sole aim of bankruptcy lawyers Brighton Beach is to represent the interests of their clients—to keep them from being bullied and coerced by creditors and officers of the court and to give them the best chance to start over.
Bankruptcy may lead to the discharge of many debts. However, it will not save you from paying alimony, child support, or certain taxes.
Chapter 7 Bankruptcy
Filing chapter 7 will allow you to clear most of your debt. You may also be required to surrender certain assets. You should file chapter 7 if you have little disposable income. Once you have filed, you are no longer legally required to pay back the debt on your loan or credit card. Chapter 7 will also stop creditors from contacting you, collecting money from you, and continuing to garnish your wages.
If you file chapter 7, your credit will take a hit. The bankruptcy will stay on your credit report for up to 10 years, which means you may have to pay much higher interest rates if you take out a credit card or mortgage.
You should consult with a Chapter 7 bankruptcy attorney in Brighton Beach before you file.
Chapter 13
This bankruptcy option allows you to restructure your payments. Chapter 13 is mostly for people who have steady and sufficient income to live but need more time and flexibility to pay what they owe. Chapter 13 allows you to keep all your assets. It can stop debt collections and the foreclosure process. The latter is an especially important advantage of Chapter 13, as it gives you the chance to catch up on your past-due mortgage payments.
A Chapter 13 bankruptcy attorney in Brighton Beach can help you figure out a way to consolidate your monthly payments so that you repay your debt in a more convenient and cost-effective way. Most Chapter 13 repayment plans are completed between three to five years. If you are unable to stick to the repayment plan, then you may lose your Chapter 13 status and even some of your assets.
Filing for Chapter 13 bankruptcy will not have as severe an impact on your credit. The bankruptcy will stay on your credit report for up to 7 years. However, many creditors look more favorably on Chapter 13 than they do on Chapter 7, which means your interest may not be as high.
You Should Have a Lawyer by Your Side
Creditors will do everything in their power to get their money. Although bankruptcy laws are designed to protect debtors, you can only preserve your rights if you have Brighton Beach bankruptcy lawyers by your side. Bankruptcy lawyers in Brighton Beach know the law. They know how to use it to get you the best deal possible in any bankruptcy settlement. You should not have to give up your entire life as a result of filing for bankruptcy. The Brighton Beach bankruptcy attorneys at Ursulova Law Offices will help you do what is right for yourself and your family in the event that you are forced into bankruptcy.
