(Raleigh, NC, January 2023) In a blog post, Berggren Law Offices, PLLC outlined the difference between Chapter 7 and Chapter 13 bankruptcy; one may be more beneficial for you in your particular situation.
Although both Chapter 7 and 13 bankruptcies are available in North Carolina, there are a few key distinctions between the two. Most notably, chapter 7 bankruptcy is generally quicker and simpler to file than chapter 13. Whereas chapter 13 may allow you to catch up on delinquent payments or keep property that has too much equity to be retained in chapter 7.
Chapter 7 bankruptcy allows you to discharge most of your debts, including credit card debt, medical debt, and personal loans. In exchange for this debt relief, you may have to give up some of your assets, such as your home or car.
In Chapter 13 bankruptcy, on the other hand, you will be able to keep most of your assets. However, you will have to repay your debts over time, typically for three to five years. Chapter 13 bankruptcies can benefit people with a steady income but are struggling to keep up with their debt payments.
The ideal Chapter of Bankruptcy for you is entirely contingent on your finances. Chapter 7 bankruptcy may be better for you if you have a large amount of unsecured debt, such as credit card debt, and relatively few assets. Chapter 13 bankruptcy may be better for you if you have a regular income and can afford to repay some of your debts over time. Suppose you are unsure which type of bankruptcy is right for you. In that case, it is best to speak with an experienced Raleigh bankruptcy attorney who can evaluate your financial situation and advise you on the best course of action.
A bankruptcy lawyer can help you navigate the legal process. Filing for bankruptcy is complicated, and you may not know where to begin or what to expect. A Raleigh bankruptcy lawyer can guide you through the process step by step, ensuring that all of the necessary paperwork is completed and filed correctly.
Hiring a bankruptcy lawyer can help you protect your assets. When you file for bankruptcy, certain assets may be subject to seizure by your creditors or the bankruptcy trustee. A bankruptcy lawyer can help you determine which assets are protected and which are not so you can keep as much of your property as possible.
A Raleigh bankruptcy attorney can also help you negotiate with your creditors. If you are unable to repay your debts, your creditors may be willing to work out a repayment plan that is more manageable for you. With a bankruptcy lawyer’s help, you can reach an agreement with your creditors that is beneficial for both parties.
About Berggren Law Offices, PLLC
William G. Berggren’s experience includes work on some of the most complex corporate bankruptcies, some of the most significant bankruptcy filings in the country to the simplest individual filings. Berggren Law Offices, PLLC, offers free consultations to learn more about filing for bankruptcy and has over 30 years of experience providing its clients with effective legal representation.