Is bankruptcy for you? If you are going through a decision to file for bankruptcy, it is important to know the differences between Chapter 7 and Chapter 13. We are going to focus on the Chapter 7 and what makes it unique.
Chapter 7 is a lot shorter time process
The most critical component to Chapter 7 is the amount of time it takes. From the day the case is filed with the court, you can see a fresh start to your financial life beginning in as little as four months. The benefit with a chapter 7 is the fact that it gets you back on with your life.
Legal fees for Chapter 7 bankruptcy are less
During a Chapter 7 bankruptcy case, you are hiring a bankruptcy attorney to work on your behalf for the duration of the time it takes to close your case. The same goes for a Chapter 13. The difference is the amount of time it takes. Chapter 7 takes months, where a Chapter 13 takes years. It is also very important to make sure your attorney discloses all the fees. At Castle Law Office all fees are included.
No pay back on most unsecured debt
During a bankruptcy case it is important to know that different debts are treated differently. The two different classes are secured and unsecured. A secured debt are things that have collateral associated with them. Think of things like a house, car, etc. An unsecured debt are things like credit cards, medical bills and personal loans.
No monthly payment
A Chapter 7 bankruptcy does not require a monthly payment. With a Chapter 7 bankruptcy taking less than half a year all payments are set up in advanced and must be paid in full. This allows anyone thinking about filing for Chapter 7 the ability to eliminate debt and not have a monthly payment to get out of debt.
Recovery time is faster
After a Chapter 7 bankruptcy it is not uncommon to see your credit score go up. Within two years of your bankruptcy case being completed you could become eligible for FHA home loan.
If you are having difficulty dealing with climbing debt call Castle Law Office at 816-842-6200 to speak with an attorney. Or you can email us and schedule your free consultation.