Is Chapter 7 or Chapter 13 Bankruptcy a Better Option for You?

Published On: June 12, 2023Categories: Bankruptcy

Hudson Valley Bankruptcy LawyerIf you dread opening your email, fielding phone calls, and walking to your mailbox because communications from creditors are arriving incessantly, it may be time to start thinking about filing for bankruptcy. Certainly, filing for bankruptcy is not the most effective debt management and/or debt relief solution for every challenging financial situation. However, if you are consistently struggling to pay your debts, know that filing for bankruptcy can potentially provide you with much-needed relief and a chance to regain your financial stability.

Unless you own a small business, chances are that you will either benefit from filing for Chapter 7 or Chapter 13 bankruptcy relief. Each opportunity features potential benefits and drawbacks. As a result, it is important to assess each option carefully before committing to one over the other.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy relief is made available to low-wage earners and their families. If you qualify to file for this type of bankruptcy, your eligible, unsecured debts will be discharged without a repayment plan requirement. You will risk having your non-exempt property sold by the trustee assigned to your case for the benefit of your creditors but only a tiny fraction of filers end up losing any assets as a result of the Chapter 7 bankruptcy process.

Chapter 13 Bankruptcy

If you either do not qualify for Chapter 7 bankruptcy, you do not want to risk losing non-exempt assets, or you need to save your home from a risk of foreclosure, you will likely want to file for Chapter 13 bankruptcy protection. Chapter 13 cases require filers to construct a 3-to-5-year repayment plan wherein one manageable debt payment is made each month to the court. The court then distributes that payment to a filer’s creditors per the terms of their plan. At the end of a successful repayment period, a filer’s remaining eligible debts are discharged.

Speak with a Reputable Hudson Valley Bankruptcy Lawyer for Free to Learn More

If you are unsure of whether bankruptcy is the right way forward for you – or you want to file for bankruptcy but you are unsure of which approach will benefit you most significantly – know that you can connect with a knowledgeable Rockland County, NY bankruptcy lawyer at Law Offices of Robert S. Lewis, P.C. for free to receive personalized guidance. Our firm is proud to offer initial case evaluations at no cost because we believe that everyone deserves to understand their rights and options under the law.

To learn more about bankruptcy and about how our firm can help you to build a stronger financial foundation, call our team at 845-358-7100 or fill out a contact form on our website to schedule a risk-free, confidential consultation. Less stressful days may only be a bankruptcy filing away. We look forward to hearing from you.