Should You Choose Chapter 7 or Chapter 13 Bankruptcy?

Choosing whether to declare chapter 7 or chapter 13 bankruptcy can be a big question. For most people who have never been through the process, bankruptcy can be a bit of a mystery. One of the biggest areas of confusion for people involves the difference between Chapter 7 vs. Chapter 13 bankruptcy. Although this distinction can be confusing, and it might seem like legal minutiae, it is a critical distinction that could have a significant impact on your debt-relief options.

Make sure you work with a lawyer with experience who understands the laws and options available to you in bankruptcy. At The Law Offices of Ronald I. Chorches, we can advise you of your rights and options. With more than 20 years of legal experience representing Connecticut clients, Hartford bankruptcy attorney Ronald I. Chorches can help you understand the differences between Chapter 7 and Chapter 13 bankruptcy, and he can help you through a debt relief process that will be best for your needs.

The Primary Differences Between Chapter 7 And Chapter 13 Bankruptcy

Although both forms of bankruptcy are focused on helping debtors find relief, and both involve an automatic stay from collections efforts, there are some significant differences between the two, including:

  • What they can do with your mortgage debt: While a number of solutions can be found with both types of bankruptcy, Chapter 7 is a better tool for removing judgment liens and other leans, while Chapter 13 is a great tool for stripping off second mortgages.
  • The form of relief they take: While Chapter 7 is most often used for elimination of unwanted debt, Chapter 13 provides debt repayment solutions that leave filers with manageable payment plans that allow them to retain their valuable assets.
  • The time it takes to complete the process: Chapter 7 takes a few months to complete the process, generally, and once the process is completed, unwanted debts are eliminated. In contrast, people filing for Chapter 13 enter into a three-year or five-year repayment plan.

These are just a few of the differences between these bankruptcy types. There are other important distinctions, as well as alternatives to bankruptcy that we can discuss as we explore the best debt relief options available to you.

Contact The Law Offices Of Ronald I. Chorches ∙ Free Initial Consultations

Do not wait until your debt problems increase or you lose your home to foreclosure. Contact an experienced attorney right away to discuss your options by calling 860-563-3955or sending us an email.