The Difference Between Chapter 7 and 13 Bankruptcy
Determining when bankruptcy is your best option for your financial situation can be tough. But when you meet the realization, you need to decide whether filing for Chapter 7 or Chapter 13 bankruptcy will benefit you the most. These are the two most popular types of bankruptcy filed in the United States and the state of Texas, and there are some important differences to consider with each.
Chapter 7 Bankruptcy
Filing for Chapter 7 bankruptcy could provide you complete relief of all your debts. A quick way to determine whether you qualify is to speak with the best bankruptcy attorneys in Houston for an evaluation. Simply put, if you have very little disposable income, then you may be a candidate for Chapter 7 bankruptcy.
If you have any nonexempt assets, you may be forced to sell them in order to repay creditors. However, many people who file for Chapter 7 bankruptcy do not have such assets, so creditors will not receive anything as a result. The process isn’t overly complex in some cases, but you still need to consult with bankruptcy attorneys in Houston before proceeding.
Chapter 13 Bankruptcy
If you make a decent enough income to pay back at least a portion of your debts, then you may qualify for Chapter 13 bankruptcy in Texas. Chapter 13 bankruptcy is designed simply to reorganize your payment options in order to make them less burdensome. You will typically not lose any nonexempt assets, but must make enough money to be put on a monthly payment plan.
Since Chapter 13 bankruptcy requires a restructuring and reorganizing of payment plans, you can understand how complex it could be. As a result, it’s a necessity to have a bankruptcy lawyer on your side.
Find The Best Lawyer For Your Situation
Every bankruptcy case in Texas is different. You may be right on the border between being able to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. If you aren’t sure which would be most beneficial for you, bankruptcy attorneys in Houston will evaluate your specific financial situation and make a recommendation. The main thing is to never try to tackle a bankruptcy filing on your own.
Bryeans & Garcia, PLLC offers free evaluations to help determine whether filing for Chapter 7 or Chapter 13 bankruptcy is right for you. We take every case seriously and treat it as a unique case, but use our past experiences for your benefit. Be sure to contact us if you need a bankruptcy attorney you can trust in Fort Worth or Houston.