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Is Chapter 7 Or Chapter 13 Bankruptcy Right For You?

Filing for bankruptcy is one of the most serious financial decisions you can make. For many, it is the option of last resort, one that terrifies them. We understand your concerns and we want to help you. We will help you determine what option will most benefit your current financial situation.

Below are factors you should consider when choosing between Chapter 7 and Chapter 13 bankruptcy:

The Pros And Cons Of Filing Chapter 7 Bankruptcy

Chapter 7 bankruptcy is best for people without many assets and whose debt is greater than the value of what they own. For many of our low-income community members, Chapter 7 bankruptcy is the best choice. It will:

  • Immediately stop creditors from calling
  • Wipe out debt, including medical and credit card debt

Cons include:

  • Some of your assets are liquidated, or sold, to repay creditors.
  • It remains on your credit report for about 10 years.

Chapter 7 bankruptcy is available to individuals and married couples, provided they make less than a certain amount of income. In South Carolina, you may be eligible for liquidation exemptions that can allow you to keep assets under certain circumstances.

The Pros And Cons Of Filing Chapter 13 Bankruptcy

Unlike Chapter 7 bankruptcy, Chapter 13 filings are more akin to a repayment process. Chapter 13 restructures your debt and can allow you to keep your assets without losing any equity. A Chapter 13 filing will:

  • Immediately stop creditors from calling
  • Remove some liens on your property
  • Let you keep your property
  • Let you create a repayment plan you can manage

Cons include:

  • It does not clear your debts.
  • It remains on your credit report for about seven years.

Chapter 13 bankruptcy will require you to pay back much of your debt over three to five years. If you are concerned about how Chapter 13 bankruptcy will affect you and your finances, speak with attorney Paul Bradley today.

Ask A Lawyer About Your Options Today

Bradley Law Firm, LLC, has wisdom you can rely on. For decades, we have represented South Carolina residents in bankruptcy proceedings. For a consultation, contact our office in Charleston. To speak with us directly, call 843-571-4611.