Chapter 7 bankruptcy is ideal for those with little to no income and limited assets who are challenged by unmanageable debt. This type of bankruptcy helps eliminate unsecured debts, including healthcare bills, garnishments, and money owed on credit cards while still protecting personal property.
Chapter 13 bankruptcy helps those with a regular income reorganize debt and create a realistic, three-to-five year repayment plan. This type of bankruptcy protects your personal property while allowing you to repay debts that are not dischargeable under Chapter 7 bankruptcy, like child support payments or alimony.
For some, neither Chapter 7 nor Chapter 13 bankruptcy is the right choice. Another option is debt consolidation, in which the debtor takes out a loan to pay off debts and creates a realistic payment plan on that loan. To find out which option is right for you, contact Attorney Michael Burr and the experts at Burr Law Offices today.