If you are starting to plan your bankruptcy, one of the first questions you will ask will be whether you should file Chapter 7 or Chapter 13 bankruptcy. While both have their advantages, today we will discuss the advantages of a Chapter 7 bankruptcy. If you have additional questions, contact The Law Offices of Paul Y. Lee at 888-748-0025 for help.
Chapter 7 Bankruptcies Are Fairly Quick
If you want the process to be over as quickly as possible, then a Chapter 7 bankruptcy is likely the best option for you. In fact, these can take just three to six months to complete, depending on the specifics of your case.
There is No Payment Plan
If you file for Chapter 13 bankruptcy, you will be required to pay on a payment plan for three to five years. This can be very difficult for some people to keep up with for that long. Luckily, there is the option of Chapter 7, which does not require a payment plan.
Many Debts Get Wiped Out
While you will not have all your debts wiped out, many of them can be. You can emerge essentially debt-free except for a few specific debts. These include student loans, taxes you owe from the last three years, and unpaid child support.
You Are Able to Protect Property
Yes, you can lose property in Chapter 7, but you can also often keep everything you have. You can keep necessities such as homes and vehicles in most cases, and if you do not own a lot of luxury goods, then you are likely to be able to keep all property.
Is Chapter 7 the Right Option for You?
The best way to find out for sure if Chapter 7 is the right option for you is to talk to a bankruptcy attorney. When you contact The Law Offices of Paul Y. Lee at 888-748-0025, we will go over your case and determine the best possible way forward. However, there are some situations that are much more likely to be best for Chapter 7 than Chapter 13.
If you own little property, have significant personal loans, credit card balances, or medical bills, and your family income is not more than the state median for your family size, then Chapter 7 could be the right choice. To determine if your income qualifies you for Chapter 7, you will take the means test.
If your income is below the average income for a family of your size, then you will qualify. Even if you do not qualify by these means, there other steps that can qualify you. The Law Offices of Paul Y. Lee will help you find the right options.