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  • Add You - Chapter 7 and Chapter 13 Bankruptcy - Choose The Wrong Option and You Could Lose Everything

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    with a lot of debts, a Chapter 7 bankruptcy is the best option: you don’t have to repay your creditors, the process ends relatively quickly, and if you have no assets,
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    There are two legal processes in the United States for dealing with your debts. Chapter 7 bankruptcy, also known as "straight bankruptcy" or liquidation bankruptcy, involves surrendering your assets in exchange for eliminating your unsecured debts, like credit cards. If your assets are exempt, you may not lose anything.

    The other process is Chapter 13 bankruptcy, also known as a "Wage Earner’s Plan". Under Chapter 13 you retain control of your assets, but you are required to make monthly payments for a three to five year period to repay your creditors.

    At first glance it may appear that, for someone with a lot of debts, a Chapter 7 bankruptcy is the best option: you don’t have to repay your creditors, the process ends relatively quickly, and if you have no assets, y

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    on bankruptcy, involves surrendering your assets in exchange for eliminating your unsecured debts, like credit cards. If your assets are exempt, you may not lose anything.

    The other process is Chapter 13 bankruptcy, also known as a "Wage Earner’s Plan". Under Chapter 13 you retain control of your assets, but you are required to make monthly payments for a three to five year period to repay your creditors.

    At first glance it may appear that, for someone with a lot of debts, a Chapter 7 bankruptcy is the best option: you don’t have to repay your creditors, the process ends relatively quickly, and if you have no assets,

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    The other process is Chapter 13 bankruptcy, also known as a "Wage Earner’s Plan". Under Chapter 13 you retain control of your assets, but you are required to make monthly payments for a three to five year period to repay your creditors.

    At first glance it may appear that, for someone with a lot of debts, a Chapter 7 bankruptcy is the best option: you don’t have to repay your creditors, the process ends relatively quickly, and if you have no assets,

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    ur assets, but you are required to make monthly payments for a three to five year period to repay your creditors.

    At first glance it may appear that, for someone with a lot of debts, a Chapter 7 bankruptcy is the best option: you don’t have to repay your creditors, the process ends relatively quickly, and if you have no assets,

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    with a lot of debts, a Chapter 7 bankruptcy is the best option: you don’t have to repay your creditors, the process ends relatively quickly, and if you have no assets, you have no assets to lose. Chapter 13 seems like a worse alternative, since you will probably be making payments for the next five years.

    However, there are some obvious reasons why a Chapter 13 Wage Earner Plan is the better option.

    First, thanks to the 2005 Bankruptcy Reform legislation, all potential bankrupts are subject to a means test; if your income is too high, you cannot file bankruptcy under Chapter 7; you must file under Chapter 13.

    Second, a Chapter 13 Wage Earner Plan generally allows you to retain all of your assets, so if you would lose assets in a Chapter 7 bankruptcy, Chapter 13 may be the correct option for you

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