For those with limited disposable income, Chapter 7 bankruptcy can be a good tool to get out of debt. Under Chapter 7, the filer is able to discharge many types of debt, including credit card, medical, and garnishment, while protecting their personal assets. Those with enough income to make regular payments on their debts, however, would not be eligible for Chapter 7.
Chapter 13 bankruptcy is often the right solution for those with enough disposable income to pay back their debts, and puts the debtor on a repayment plan to do so. Chapter 13 protects all property belonging to the filer, and is a good solution for those with debts that are not dischargeable in bankruptcy, like alimony or child support.
For those who fall outside of the requirements of Chapters 7 and 13 bankruptcy, debt consolidation may be a solution. Debt consolidation is a form of refinancing in which the debtor takes out a loan to cover debts and makes payments on that loan. To find out the option that is right for you, give the experienced attorneys of Burr Law Office a call today.