For those buried under medical bills, credit card bills, or experiencing wage garnishment, with little or no disposable income, Chapter 7 bankruptcy is a great tool to reclaim financial freedom. Chapter 7 discharges most types of debt while protecting personal property like a car or house. However, those with enough income to make payments on debt would not be eligible.
If you have disposable income but are unable to pay back your debt, Chapter 13 bankruptcy may be a good solution for you. Under Chapter 13, the debtor is put on a plan to repay debt over three to five years and can keep all their property. This means that debts like child support, which cannot be discharged through bankruptcy, can be repaid.
Another good option, particularly for those who don’t qualify for Chapters 7 or 13 bankruptcy, is debt consolidation. When debt is consolidated, a loan is taken out to repay the existing debt, and payments are subsequently made on the loan. Attorney Michael Burr and associates can help you decide which option is best for you.